London-based mortgage brokers with expert knowledge & professional service

Some of the biggest lenders have been improving their mortgage rates ahead of a potential Bank of England base rate reduction on Thursday.

Halifax is lowering the price of many of its mortgage rates by up to 0.30%, although the bank is raising its 1.5-year fixed rates. Barclays has reduced rates by up to 0.25%, while Clydesdale Bank is also lowering some rates by up to 0.24%

Halifax's biggest reductions are to its existing customer product transfer and further advance rates, which will drop by up to 0.30% tomorrow. Its first-time buyer and home mover deals will also fall by 0.11%, but the lender is increasing rates on 1.5-year remortgage deals by up to 0.07%. 

Meanwhile, Barclays has reduced rates on scores of residential deals for both purchase and remortgage today. Among the biggest price drops, the 85% loan-to-value two-year fixed rate for purchases has come down by 0.25% to just below 4.80%, and it has a £899 fee.

Clydesdale Bank is also lowering selected two and five-year Large Loan and Interest Only residential rates will be reduced by up to 0.28%. 

At Leeds Building Society, new first-time buyer products will be introduced tomorrow and selected residential fixed rates will be reduced by up to 0.15%.

Aaron Strutt, product director at Trinity Financial, says: “The Bank of England base rate may come down on Thursday (6th February), and if it does, we could see fixed rate come down a bit. The most competitively priced two-year fixes are priced around 4.25%, and five-year fixes are edging closer to 4%.

"HSBC has also announced that it is lowering many of its new mortgage business rates, but putting up many of the rates available to existing customers on Thursday 6th February."

Call Trinity Financial on 0808 1642174 to confirm how much you can borrow and the most competitively priced rates. You can also book a consultation or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage  

So far this month there has been a mixture of fixed-rate price increases and reductions despite market volatility.  

Many of the bigger banks and building societies have not raised the cost of their most competitively priced rates. This means some mortgages, mainly for those with larger deposits, are still priced at just over 4%.

Major banks like HSBC for Intermediaries, Barclays, and Halifax have maintained competitive mortgage offerings. HSBC, for instance, has a sub-4.10 % five-year fixed deal and Nationwide still has a sub-4.2% two-year fix.

Average mortgage rates fell at the beginning of this year, with the margin between two- and five-year fixed rates at its lowest level in two years. According to Moneyfacts UK, the average two-year fixed rate has dropped to 5.48%, while the average five-year fixed rate decreased to 5.25%. 

Aaron Strutt, product director at Trinity Financial, says: “Mortgage rates are susceptible to market confidence and pricing pressures. The cost of funding mortgages increased significantly a few weeks ago, but these rises have subsided, and it looks like prices may come down or at least stabilise over the coming days.”

City AM newspaper reports market traders anticipate just two Bank of England interest rate cuts this year, with one more cut priced in for 2026. This would leave the benchmark bank rate at 4.0 per cent, down from the current 4.75 per cent. However, Goldman Sachs has argued that money markets significantly underestimate the chance that the Bank of England will have to step up the pace of cutting interest rates. Fixed rates could get cheaper this year if the investment bank is correct.

Many outside pressures are bringing financial instability, prompting many borrowers to lock into five-year fixes for payment security. 

What else has been happening in the mortgage industry?

Nationwide for Intermediaries has increased the minimum income required to qualify for its 6x salary Helping Hand mortgage, potentially enabling first-time buyers to borrow up to 33% more than with Nationwide's standard products.

There is a regulatory limit on lending to customers with higher loan-to-income levels. To ensure Nationwide remains within these limits, the building society increased the sole applicant's minimum income required from £35,000 to £40,000.

The government is considering relaxing mortgage affordability rules to support first-time buyers in homeownership. It is also set to review the rules and tests regarding how much applicants can borrow relative to their income. Lenders are currently limited in the number of loans they can offer applicants who need to borrow 4.5 times their salary.

Nikhil Rathi, Chief Executive of the Financial Conduct Authority, recently wrote to the Prime Minister, Chancellor, and Secretary of State, saying he understands the need to remove unnecessary rules. The regulator will also “begin simplifying responsible lending and advice rules for mortgages, supporting home ownership.”

Santander is looking at exiting the UK market, according to press reports

Santander is reportedly contemplating leaving the UK market due to regulatory challenges and operational costs. 

Call Trinity Financial on 0808 1642174 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage 

Most borrowers taking out a mortgage opt for a two or five-year fix. But is it better to fix in for two or five years?

The length of the mortgage rate borrowers take often depends on their attitude to risk. Most people do not want to fix into a higher rate than necessary, especially with multiple banks and economists expecting the Bank of England base rate to come down this year. However, given current global affairs, there is also a chance rates could go up.

With so many homeowners due to remortgage this year and huge numbers of first-time buyers and homemovers set to buy, choosing the right mortgage deal is essential and not necessarily straightforward.  

Aaron Strutt, product director at Trinity Financial, says: “Many borrowers want payment security, so they opt for five-year fixes. Those taking two-year deals often suspect rates will come down and think the economy will be in better shape sooner rather than later. I know Trinty's director, Jed Newton, expects rates to decrease over the near term.

“We used to tell many borrowers that when taking a variable or tracker mortgage, they need to be able to afford to take the gamble by opting against the payment security of a fix, and the same almost applies to borrowers taking two-year deals today. Many people don't want to take a five-year fix and then see rates come down, but ultimately, they may give up the chance of longer-term payment security.

"If you can get a two or five-year rate close to 4%, then you are getting pretty decent value for money based on how the market has gone since the Liz Truss mini-budget."

Price gap between two and five-year fixes

There is a relatively small price gap between a two- or five-year fix. It was not long ago that the five-year fixes were much cheaper, but this is not always the case anymore. 

Many of the lender's lowest rates tend to be five-year fixes, and they also provide more generous loan sizes when borrowers opt for a five-year fix.

What other mortgage options are there?

There is currently a good choice of mortgage rates. Some lenders offer one-year fixes to new and existing customers. There are also 1.5-year, three-, four-, and ten-year fixes. There are also fixed-for-term mortgages, with between 11 and 40-year fixes, designed to enable some borrowers to secure more generous loan sizes.

More banks and building societies also offer competitively priced Bank of England base rate mortgages, and some do not have early repayment charges.

Are there other reasons to opt for shorter-term fixes or tracker rates?

If you plan to sell your property over the near term, then opting for a longer-term fix may not make sense because of the costs involved in repaying the mortgage early.

If you are a first-time buyer or have a low deposit, it often makes sense to take a short-term fix and assess the market in two years when, hopefully, you have more equity in your home.

If you are not getting on with your partner and worry you may separate or divorce, a shorter-term fix or tracker may also make sense.

Some lenders do not offer any early repayment charge-free rates apart from their expensive standard variable rates. This means tracker rates are a good bet for those needing flexibility potentially to make regular or lump sum overpayments. 

Porting your mortgage

If you are considering selling your property and moving up the ladder, you could port your mortgage, provided you meet the lender's new affordability rules. However, if you need to pay it off, you could have higher early repayment charges with a five-year fix.

Call Trinity Financial on 0808 1642174 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage 

The Stamp Duty holiday deadline is approaching, and lenders and brokers must manage borrower expectations, says the Intermediary Mortgage Lenders Association (IMLA).

In April the minimum stamp duty threshold will revert from £250,000 to £125,000; while for first-time buyers it will revert from £425,000 to £300,000.

Kate Davies, executive director of the Intermediary Mortgage Lenders Association, said: “Lenders are just as keen as brokers to ensure as many customers as possible can complete on their property transactions ahead of April 1^st, but congestion at the conveyancing stage is a real issue, and some borrowers will bear the brunt of higher Stamp Duty as a result.

“Industrial action at the Land Registry will not help when it comes to transfer of title post-completion, particularly with those less routine cases which cannot be dealt with via an automated process.

“It is more important than ever that we keep the lines of communication open between lender, broker and borrower in the weeks ahead.”

Call Trinity Financial on 0808 1642174 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage 

Banks and building societies will be hoping for a busy start to 2025 by offering competitively priced rates and more generous loan sizes. However, as the value of the pound falls and government borrowing costs rise following Rachel Reeves's budget, fixed-rate mortgage price hikes may not be far away.

HSBC has announced two separate mortgage rate improvements this year, while Halifax lowered some rates by up to 0.35%. Most mortgage lenders still offer a range of competitively priced fixed rates, including HSBC's two-year fixes priced around 4.2% and its five-year fix priced just over 4%, but these rates may not be available for long.

Mortgage lenders are undoubtedly offering more generous income multiples and larger loan sizes, partly because the Bank of England base rate changes have enabled them to reduce their affordability stress tests. 

Santander is still forecasting four base rate cuts from the Bank of England in 2025 despite sticky inflation and turbulent bond markets.

Santander forecasts four base rate cuts from the Bank of England in 2025, despite sticky inflation and turbulent bond markets.

Frances Haque, the Chief Economist at Santander UK, said, “This month, we’re already seeing swap rates edge up as they respond to volatility in the bond market, caused by an uncertain economic outlook for 2025 both at home and abroad. As such, lenders may well – in the short-term - nudge up pricing to reflect the higher swaps.

"With just less than a month to go until the next Monetary Policy Committee announcement, all eyes are on this week’s inflation and GDP data to give some indication of how close the next cut from the Bank will be. As it stands, with inflation proving to be more persistent but with growth weakening, the MPC is likely to proceed cautiously. Our own forecasts continue to expect a further four cuts over the course of this year, with base rate ending the year at 3.75%, and remaining between 3-4% for the foreseeable.”

Call Trinity Financial on 0808 1642174 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Yes, Halifax customers can now apply for a new mortgage rate and additional mortgage borrowing through brokers up to four months before their existing mortgage rates expire.  

Halifax for Intermediaries has simplified its mortgage process to make it easier for its existing customers to switch rates and simultaneously take out additional mortgage borrowing.

Many mortgage lenders keep the rate switch process separate, so applicants need to apply for a rate switch and additional borrowing separately. They also potentially have different rates. The industry term for a mortgage rate switch is a product transfer, and additional borrowing is known as a further advance. 

Halifax's new additional borrowing feature will allow Trinity Financial's brokers to apply for new product transfer mortgage rates and additional borrowing and amend the mortgage term. 

Instant additional mortgage borrowing decisions

The mortgage process provides instant decisions, including a decision in principle to confirm when applicants can raise additional funds. It also includes a soft footprint credit search. The system can create and review mortgage illustrations instantly.

Aaron Strutt, product director at Trinity Financial, says, "Halifax has been working on the system to streamline product transfer and further advance applications, which are taken together, making the process better for them and Halifax mortgage customers.

"The trade body UK Finance says 1.8 million mortgages will be up for renewal in 2025, which means many people will raise funds while switching rates. Of those, 744,673 will be low-rate five-year fixed deals dating from 2020, according to Hamptons estate agency."

When can borrowers apply for a simultaneous rate switch and further advance?

It is possible to apply for a simultaneous rate switch and advance within the last four months of an existing mortgage product. The new product will start after the current product ends, and applicants may need to draw down additional borrowing a month before their fixed or tracker rate starts.

When you are within the last 3 months of an existing product, you can start a new product From the 1st of the following month and waive any Early Repayment Charge or Forward date for the new product to begin after the current product has ended. Please note that lenders often change these rate switch qualification rules.  

What is the Halifax additional borrowing mortgage criteria?

The minimum further advance amount is £10,000, and a further advance is not permitted within 6 months of completion of the original mortgage.

No arrears - A further advance application cannot be accepted where the existing mortgage is in arrears. Acceptable reasons for a further advance – see Criteria section for a list of acceptable reasons.

The maximum 85% loan to value (LTV) —the existing loan plus the further advance amount must not exceed 85% LTV; if it is above 80% LTV (based on the current indexed valuation), a revaluation will be required, and a revaluation fee will be due. Repayment plans—where the current mortgage has an interest-only amount, acceptable repayment plan(s) must be held, or no further advance will be available.

The most popular reasons for a mortgage further advance are as follows:

• Debt consolidation
• Gift to relative
• Home improvements (shared ownership included)
• Investment purpose (restriction - not for currency speculation or the purchase of stocks and shares)
• Purchase freehold - (conveyancer required)
• Purchase additional land adjacent to property (conveyancer required)
• Purchase extension to lease - (conveyancer required)
• Purchase additional share (shared ownership)

Call Trinity Financial on 0808 1642174 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage