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Halifax slashes rate to 0.83 per cent on two-year fixed mortgage

  • 06/08/2021
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Halifax slashes rate to 0.83 per cent on two-year fixed mortgage
Halifax has launched a two-year fixed rate of 0.83 per cent at 60 per cent loan to value (LTV) and reduced rates across a number of other products.


The eye-catching rate is down from 1.04 per cent. The mortgage has a £1,499 fee and maximum loan of £1m. 

The £999 fee option has been reduced to 0.87 per cent and the fee-free is priced at 1.16 per cent.

The changes will come in on Monday.

The lender has also launched a five-year fixed rate at 1.03 per cent and a 10-year fix at 2.07 per cent at the same tier. 

Other reductions feature the fee-free two-year fix at 60 per cent LTV, cut from 1.39 per cent to 1.16 per cent. 

At 85 per cent LTV, the two-year fixed product with no fee has been reduced from 2.36 per cent to 2.07 per cent, while the three-year fixed alternative with a £999 fee has seen a 35 basis point reduction to 2.09 per cent. 

The two-year fixed mortgage with a £999 fee, at 90 per cent LTV, has been reduced to 2.19 per cent, from 2.53 per cent. The three-year fixed fee-free product at the same tier has gone down to 2.96 per cent from 3.30 per cent. 


Short-term offer 

Doug Miller, director at Lansdown Financial Services, said: “I predicted a rate war when HSBC launched market leading products in June, and with Nationwide and now Halifax offering sub-one per cent deals, the mortgage market is becoming fiercely competitive between lenders, as the housing market shows the first signs of slowing down.  

“While the rate war between lenders continues to drive interest rates down, like all good things this will come to an end shortly. For those in a position to buy or remortgage now, you are in an enviable position of all other mortgage holders in the UK.” 

Robert Payne, director at Langley House Mortgages, added: “The only caveat to this product is that your LTV is 60 per cent or below. Other than that, anyone that meets standard criteria with a good credit history will be eligible to apply.  

“These rates are unlikely to be around for long and there is not much room for them to get any lower, so it really is worth considering fixing your rate for a longer period.” 

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