Halifax has just announced remortgage rates, product transfers and further advances for 2-year deals are increasing by up to 0.32% from 8pm, Thursday 14 February.
Newspage asked mortgage brokers for their thoughts on this and why rates are going up when the cost of money is starting to fall.
Richard Jennings CeMAP, founder & managind director at Richard Jennings Mortgage Services said, “The only thing that’s consistent in the mortgage market at present is its inconsistency.
“After GenH and Coventry both announced rate cuts, I hoped this would be the beginning of several lenders doing the same, so to see Halifax announce rate rises of up to 0.32% dashes those hopes.
“Continuing the theme of punishing existing borrowers rather than new ones, I note the highest rate rises are for those looking for product transfers and further borrowing.
“Loyalty is a two-way street that lenders appear to very seldom walk down.”
Dariusz Karpowicz, director at Albion Financial Advice said, “Halifax hiking rates by up to 0.32% marks another negative adjustment in the lending landscape.
“This latest rate hike by the nation’s leading residential lender swiftly follows a prior increase, signalling a potent trend.
“Halifax’s actions not only spotlight its market strategy but also potentially steer the direction for other lenders.
“Despite emerging signs of a decrease in the cost of borrowing, this rate rise points to a complex mix of factors driving such decisions.
“It highlights the fluid nature of the mortgage market, where lenders navigate through a myriad of market dynamics, regulatory frameworks and economic signals.”
Darryl Dhoffer adviser at The Mortgage Expert said, “Halifax were already in a hole this morning with the news that they are reducing certain maximum age limits from age 75 to 70, which doesn’t help borrowers stretched to the limit already.
“With these rate rises, they are still frantically digging a bigger hole. When SWAP rates are cooling, why are lenders increasing rates? The one positive is that we’ve at least had over 24 hours’ notice.”
Luke Thompson, director at PAB Wealth Management said, “This is Halifax’s second strange decision of the day.
“They have been competitive on price in recent weeks it has to be said but the cost of money has been falling in recent days and we have had rate reductions from a couple of lenders this week.
“Halifax know, though, that a lot of their business is criteria driven and with this in mind a lot of the time they can charge what they want as long as it isn’t too expensive and customers will have to pay it as the business they tend to attract often won’t fit with other high street lenders.”
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