Halifax slashes rates on direct-only deals

6 September 2010 | By Natalie Thomas

Borrowers that apply direct for a Halifax mortgage between today and October 3 2010 will get a reduction of 0.30% off their mortgage rate until the end of 2011.

Customers that have a current account will also get a further 0.20% reduction - resulting in a reduction of 0.50% until the end of next year.

The cuts are part of the lender’s “Great Mortgage Rate Cut” campaign.

In July Halifax cut some of the fees on its direct deals by up to 50%.

To coincide with the latest rate reduction, Halifax is also introducing a new direct-only two-year tracker, available to homemovers and first-time buyers.

As part of its cuts, the deal offers a rate of 2.49% until the end of 2011, followed by 2.79% for a further year.

New and existing current account customers can access a rate of 2.29% until the end of next year, when they’ll move on to 2.59%. The tracker is available up to 60% LTV with a product fee of £1495.

A customer borrowing £150,000 on this product would save around £450 between now and the end of 2011 as a result of the rate cut.

Stephen Noakes, commercial director of mortgages at Halifax, says: “The Halifax Great Rate Cut sees us making significant reductions across our whole product range for homebuyers. We know that the first year in a new home can be expensive, so this rate cut should make a helpful difference for customers.”

Readers' comments (15)

Anonymous | 6 Sep 2010 5:00 pm
Halifax were the first ( and very few ) lenders to reduce proc fees when the recession hit and this confirms they have not and do not like dealing with brokers.
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anon | 6 Sep 2010 5:03 pm
If you take the report above and the current service levels and customer service being provided by The Halifax it is not to difficult to see that this is a lender who do not want brokers business. You have to wait 20 minutes for them to answer the phone, (how they have changed)
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roger travis | 6 Sep 2010 5:04 pm
no doubt we will get another annoying advert telling us all about it.
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Steve | 6 Sep 2010 5:13 pm
What is that moral guardian (The FSA) 's latest stance on dual pricing...?
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timonon | 6 Sep 2010 5:18 pm
I don't neccesarily disagree with the above comments but if halifax don't want broker business why have they just spent a shed load of money to upgrade to a "state of the art online mortgage system" for brokers?
I totally agree with their adverts being the most annoying with the stupid head-nodding "DJs". Bring back Howard!
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Dazed and Confused | 6 Sep 2010 5:21 pm
I just hope that all of us brokers will retain very long memories here...when the market returns, I am sure that there will be other lenders offering just as good if not better deals than this Government propped up dinosaur!
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Hey DJ | 6 Sep 2010 5:27 pm
Branches must be quiet then! Its all that Djing putting customers off. They need to grow up and start acting like a lender that supports brokers instead of keeping them semi-sweet for when they want them again.
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Steven Balmer | 6 Sep 2010 5:38 pm
I suspect the new system is actually to allow branch staff to utilise existing account information more than anything broker orientated. There is a change in direction as far as customer retention goes and while this is good for some it does not promote affordable borrowing for all. The idea that Lloyds or Halifax promote and appreciate broker models is frankly insulting. Actions speak louder than words. I think I have a better understanding of the impact of loyalty promo's to the wider public, as a broker, than their dept heads and strategists do. Still, not likely to change anything - they have a plan and will stick to, with the FSA doing what the it is told. It is a shame I can't keep my clients away from them, I will in due course with greater competition. Hope the FSA get booted soon and allow this to happen.
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Steve | 6 Sep 2010 5:40 pm
I haven't used the Halifax for more than 12 months now (in 2005 I introduced over £5m to them). My business with them has steadily declined to the current nil level but I have never received any query from them as to why this has happened. They obviously don't need or want my business and I think all brokers should join me in showing that we don't need them.
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Bobby | 7 Sep 2010 9:40 am
The problem is it is all good and well to say don't use them, strike them off but WHO excatly do you propose we do use ?. We have areason not to deal with EVERY lender exept the bit part players like the Coventry.
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