Halifax, one of the UK’s leading mortgage lenders, has announced a significant update that will impact numerous homeowners and prospective buyers across the country. Starting from this Friday, 15 March, Halifax will be increasing its remortgage rates, specifically targeting its two-year fixed rates. This decision follows closely on the heels of their recent adjustments to fixed rates for home purchases, emphasising a trend of tightening in the mortgage market.

Halifax’s announcement detailed that the cost of selected two-year fixed rates for remortgaging will see an increase of up to 0.17 percentage points. This change is not just a number; it signifies an added financial burden for homeowners looking to remortgage, including those with larger loans ranging from £2 million to £5 million. Additionally, the increase will touch various mortgage products, such as shared ownership and shared equity deals, and even green mortgage loans, marking a broad impact across the board.

Competitive, Yet Costlier

Before this imminent change, Halifax’s two-year fixed rate for remortgaging has been lauded as one of the best buys in the market, starting at a competitive 4.6% with a £999 fee for a 60% loan-to-value (LTV) ratio. Even with the upcoming rate hike, industry brokers believe Halifax will remain a strong contender in the mortgage landscape, although the adjustments will undeniably make things costlier for borrowers.

A Special Note for Existing Customers

It’s not just new or remortgaging customers who will feel the effects of these adjustments. Halifax has also declared an increase in two-year fixed rates on selected product transfer deals for existing customers, marking up by 0.32 percentage points. This move underscores the lender’s broader strategy to recalibrate its mortgage offerings in response to the changing economic environment.

Policy Tweaks

In addition to rate adjustments, Halifax has introduced a policy change that could have far-reaching implications for certain borrowers. The bank is reducing its maximum working age criterion on some mortgage applications from 75 to 70 years. This adjustment will particularly affect remortgage applications involving equity release or additional borrowing, as well as some purchase and remortgage applications determined by the applicant’s credit score. However, Halifax assures that for all other applications, the maximum working age remains up to 75 years.