Halifax issues message to mortgage customers and says 'effective tomorow'

Halifax will slash rates on its two and five-year mortgages - effective tomorrow. Over the last 60 days, swap rates have fallen by an average of 0.08 per cent daily, compared to an average daily increase of 0.13 per cent over the previous 60 days.

Peter Stimson, Head of Product at MPowered Mortgages, said: “The 2-year swap, which 2-year fixed rate mortgages are priced off, is now at its lowest level for 18 months and is even lower than it was at the start of the year when lenders were cutting across the board. Five-year swaps are also falling.”

Darryl Dhoffer, Mortgage Broker at The Mortgage Expert, said: "As swaps fall, UK borrowers are striking gold. Lenders use these rates to set mortgage rates, so a falling swap is like a treasure chest opening up.”

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Simon Bridgland, Director at Release Freedom, said: “It is anticipated that both 5-year and especially 2-year deals should see some good decreases up to and including 90 percent loan-to-value products, which is great news for borrowers either buying for the first time or moving home." David Stirling, Independent Financial Advisor at Mint Mortgages & Protection, said: "It's only Tuesday and another major lender has announced rate cuts. Halifax finally look to to be bringing their products closer in line with the competition.

“Although it's not clear how much exactly these cuts will be, this can only be good news for home-movers and first-time buyers, following the cuts by TSB and Barclays yesterday. How long this will continue is unclear. Next week's inflation figures could knock things either way."

Gabriel McKeown, Head of Macroeconomics at Sad Rabbit Investments, told Newspage: "It's a game of ‘Simon Says’ in the mortgage world, and this time, he’s telling lenders to 'keep cutting your rates'. With the Bank of England's base rate remaining stable at 5 per cent, the move suggests Halifax are relying on falling swap rates, which directly impact mortgage pricing more than the base rate itself. So, although the latest set of rate cuts light a path through the uncertainty for borrowers, the fog of economic instability is ever present."

Dariusz Karpowicz, Director at Albion Financial Advice, said: “The Halifax are keeping the momentum going. This is definitely the right direction, with major lenders like Halifax, Barclays, and TSB all cutting rates this week.” Justin Moy, Managing Director at EHF Mortgages, said: “Any rate cuts from the largest UK lender will always be newsworthy. Homemovers and first-time buyers are the main beneficiaries, so Halifax is helping more borrowers afford their ideal homes."