It usually appears at the top of the best-buy tables and offers competitive interest rates on most of its products. Halifax, part of the Lloyds Banking Group, has the largest share of the UK's mortgage market. Halifax mortgage prices are sometimes the most competitive in the market, but they're not looking to win business just because of the price. The flexibility of their underwriting criteria is one of the main reasons why many people use Halifax for their mortgages.
At the time of writing this article (March 2020), Halifax had competitive mortgage interest rates, which is good news for borrowers. But does the bank offer the best deal? There are plenty of other lenders in the mortgage market, so before you apply for a loan, it's wise to consider all the options. Halifax has launched a two-year fixed mortgage with a record interest rate of 0.83%. It comes in the midst of a mortgage rate war, in which five-year corrections also fell below 1% for the first time in history last month.
It's another reminder to check if you can now save 1000 pounds on your own mortgage. Affected lenders say that their follow-up mortgage rates, which are formulated to adapt to movements in the bank rate, will increase as usual. Virgin Money is reducing its fixed mortgage rates exclusively for brokers and offering a five-year fixed solution of 3.79% (65% of LTV), compared to 3.9%. The real estate portal states that the stabilization of mortgage rates and a “frantic” rental market are pushing more first-time buyers to the market.
When an applicant expects to apply for a mortgage after their retirement age, or 70 years (whichever comes first), the lender must be sure that the applicant can back the mortgage with their proven retirement income. Mortgage rates rose rapidly at the end of last year, thanks to uncertain economic conditions in the United Kingdom and the consequences of September's disastrous mini-budget, but are now falling slowly. Borrowers should compare rates and talk to a mortgage broker and be prepared to act to guarantee a rate. It was released when it published figures that estimate that around 750,000 households are at risk of falling into mortgage delinquency in the next two years due to rising interest rates and rising costs.
Nationwide Building Society, TSB and Virgin Money have announced plans to lower mortgage rates, which will be good news for borrowers. At the same time, Skipton has increased fixed mortgage rates across all of its residential and purchase-to-rent ranges. The flexibility of their underwriting criteria is a key reason why many people use Halifax for their mortgages. Fixed-rate mortgages—the most popular type of transaction among borrowers—are set according to interest rates (“swaps”), which reflect expected movements in interest rates, and not according to current interest rates.
However, which one? The Halifax Mortgage Review ranked it 13th out of 15 lenders, and it lost points in the categories of transparency of fees, the application process and value for money. Further increases in interest rates are expected to address the dramatic increase in the inflation rate in the United Kingdom, which will have a knock-on impact both on mortgage rates and on the affordability of new mortgages. Mortgage interest rates for products with commission can be significantly lower than the interest rates for products without product commission. Under Bank of England rules, banks and mortgage credit companies were forced to calculate whether potential borrowers could pay their mortgages if the interest rate offered to them increased by 3 percentage points during the first five years of the loan.
When considering a mortgage, it's important to compare all your options before making a decision. Halifax may offer competitive interest rates on some products but it's wise to look at other lenders too. Make sure you understand all fees associated with your loan and consider how much you can afford before signing any paperwork.