Halifax has just announced a significant reduction in its mortgage rates. This decision places the lender in line with its competitors, Santander and HSBC, who have also recently adjusted their rates.

Halifax has made the strategic decision to lower selected two and five-year fixed rates across its product range, which includes home purchases, remortgages, and product transfers, by up to 0.11 percentage points. This change is set to make the dream of homeownership more accessible to many, and also offers existing homeowners the opportunity to reduce their monthly mortgage payments.

New Rates Roll Out

For those in the market to purchase a new home, Halifax has already implemented these reduced rates. Meanwhile, homeowners looking to remortgage will see the new, lower rates come into effect from today, April 3rd. The same applies to two and five-year fixed-rate deals for product transfers—deals designed for existing customers who are looking to switch to a new rate—as well as deals for further advances, where existing customers are looking to borrow more.

Details on the Deals

Under the new scheme, Halifax’s two-year fixed rate for home purchases now stands at 4.63%, accompanied by a £999 fee, available to borrowers who can front at least a 40% deposit (equating to a 60% loan-to-value ratio). For those looking at a longer horizon, the equivalent five-year rate starts from 4.39% (also at 60% LTV).

BM Solutions Joins the Fray

Not to be outdone, BM Solutions—a specialist lender that falls under the Halifax Bank of Scotland umbrella—has also reduced selected fixed rates across its product transfer and further advance ranges. These new rates and deals will be available from April 3rd.