High street lender introduces a series of changes to its mortgage product line
Mortgage lenders have escalated the ongoing rate war by introducing a fresh wave of rate cuts and product changes, with Halifax leading the latest round ahead of a widely expected Bank of England rate cut next week.
The high street lender has introduced a series of changes to its mortgage product line, effective today, August 1, including rate reductions for both remortgage and product transfer customers, with adjustments spanning multiple loan-to-value (LTV) tiers. Among the key changes, Halifax has lowered the rate on its two-year fixed product at up to 60% LTV by 0.21 percentage points, bringing it to 3.81% with a £999 fee.
The two-year fixed rate for the 75% to 80% LTV bracket has dropped by 0.22 percentage points to 4.33%, while the most significant reduction applies to the 85% to 90% LTV tier, now at 4.72% after a 0.28 percentage point cut.
In the five-year fixed category, reductions range from 0.10 to 0.20 percentage points. The five-year product at up to 60% LTV will now be offered at 4.01%, and the equivalent at 85% to 90% LTV will decrease by 0.20 percentage points to 4.37%, both with a £999 fee.
Halifax – one of the UK’s largest mortgage lenders – has also extended completion deadlines for all remortgage, product transfer, and further advance products. Additionally, end dates for the updated product range have been aligned to December of the relevant year, aiming to provide greater flexibility for borrowers. The updated rates and terms are now reflected on the Halifax Intermediaries website and associated sourcing systems.
The changes come amid an ongoing rate war in the UK mortgage market, where lenders are aggressively cutting rates and launching new products to attract borrowers. This competition is driving down costs for homebuyers and those remortgaging, while prompting lenders to offer more flexible terms and incentives. Industry experts expect this trend to persist as lenders compete for market share in a challenging economic environment, especially with the Bank of England’s upcoming rate decision likely to further influence mortgage pricing.
Elsewhere in the market, The Mortgage Works, the buy-to-let lending arm of Nationwide Building Society, has implemented rate reductions on selected two- and five-year fixed products. Limited company buy-to-let rates have been cut by up to 0.25 percentage points, while buy-to-let and let-to-buy products have seen reductions of up to 0.15 percentage points. Notable changes include a two-year fixed rate for limited company buy-to-let at 3.99% with a 3% fee, and a five-year fixed buy-to-let remortgage rate at 4.44% with no fee.
Coventry for intermediaries has also reduced rates by up to 19 basis points across its residential, buy-to-let, and limited company buy-to-let ranges. Highlights include a two-year fixed rate at 3.88% for residential product transfers and a five-year fixed rate at 5.24% for limited company buy-to-let remortgages.
Meanwhile, Nottingham Building Society has introduced enhancements to its residential mortgage products, including rate reductions of up to 17 basis points across select offerings. The mutual has also launched new £1,000 cashback options for 90% and 95% LTV products, extended loan-to-income limits for high earners, and reduced stress rates on all two-year fixed residential products.
Market Harborough Building Society has also expanded its residential product criteria, allowing more scenarios to qualify for its tier two products. The changes, which follow broker feedback, include higher income multiples — up to six times income for tier two and above six times for tier three, subject to affordability. Savings-supported affordability and complex income types, such as vested share income, are now accepted under tier two.
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