Halifax and The Mortgage Works (TMW) have today announced further cuts to their fixed rate products, with both lenders shaving up to 0.50% off selected deals.
Crucially, and in a major boost for borrowers, TMW has announced a 5-year fixed rate deal at 4.99%, with a 3% fee. This is the first sub-5% deal brokers say they have seen for months and is consistent with falling SWAP rates.
“This is more great news from the UK’s largest mortgage lender and a division of the UK’s largest building society”, said Gary Bush, financial adviser at the Potters Bar-based MortgageShop.com. “The mortgage rate war is well and truly underway and it’s looking likely that there will be a busy end to 2023.”
The sentiment was echoed by Diarmuid Phoenix of Belfast-based Mint Mortgages & Protection: “Another welcome response from one of the UK’s leading high street lenders. Seeing the return of rates under 5% in line with falling SWAP rates should hopefully give a boost of confidence to borrowers who have been living in fear of the end of their current fixed rate deals, as well as those who have been sitting on the fence, waiting for rates to come down before purchasing.”
Meanwhile, Justin Moy, founder at Chelmsford-based mortgage broker, EHF Mortgages, said: “These are significant cuts by both lenders this afternoon. The extent of the changes suggests that we should be seeing good inflationary figures this month, too. Halifax is bringing its products more in line with the rest of the High Street lenders, whereas the sub-5% 5-year fixed buy-to-let deal from The Mortgage Works is undoubtedly the headline grabber. The market is definitely improving and let’s hope for more positive economic data in the days and weeks ahead.”
Amit Patel, adviser at Welling-based mortgage broker, Trinity Finance, was equally upbeat: ”After a summer of doom and gloom, it feels that, as we head into the autumn months, we may have turned the corner. Finally, there may well be light at the end of the tunnel for both homeowners and landlords as lenders are pricing their rates more competitively on the back of falling SWAP rates.”
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