Halifax has increased its mortgage rates by up to 0.15%, following similar moves by Nationwide and Barclays, adding extra costs for borrowers. Selected two, three and five-year fixed mortgage rates are rising by up to 0.10%, while remortgage products in the same terms will climb by up to 0.15%. The lender has also extended completion dates across its range, giving borrowers more time to finalise their mortgage.
This week, Nationwide pushed up selected fixed and tracker rates by up to 0.21%, and Virgin Money will lift some fixed rates by as much as 0.20%. Barclays also increased its market-leading 4.75% two-year fixed mortgage to 5.05% and its 4.93% five-year fix to 5.03%.
Experts Warn of Further Increases
Jamie Alexander, mortgage director at Romsey-based Alexander Southwell Mortgages, said the market had not finished repricing. He added: "Halifax raising rates again is not a surprise given where swap rates have been heading, but it is another reminder of how quickly the mood has shifted. A few weeks ago lenders were competing hard on price."
"Now the same lenders are quietly pulling back. The numbers look small on paper, but this is Halifax's sixth rate change since September 1. That frequency tells you more than the percentage does. The market is repricing and it is not done yet. For anyone sitting on the fence waiting for rates to improve, the calculation has changed. Act now, review later if things settle. Waiting for a better number that may not come is not a strategy."
Aaron Strutt, product and communications director at London-based Trinity Financial, said: "Halifax is the latest in a long list of lenders to raise the cost of its mortgages over the last week. The bank has been undercutting many of its competitors, especially in the higher-earning premier current account holder space as it has been offering a 4.81% two-year fix, three-year fix at 4.80% and a 4.86% five-year fix."
"The bank's standard lending range has two-year fixes starting from 5.01% and the five-year fix is 5.06%. These rates are now pulled. It seems like Halifax will still have a couple of sub-5% fixes after these latest rate hikes but they will not be available to most of its customers."
Impact on Existing and New Borrowers
Stephen Perkins, mortgage broker and managing director at Norwich-based Yellow Brick Mortgages, warned that the latest rate rises would affect both existing borrowers and those taking out new mortgages. He said: "What stands out here is that Halifax isn't just increasing rates for new borrowers. Product transfer and further advance rates are rising too, so existing customers reaching the end of a deal aren't insulated from the wider repricing."
"An increase of 0.10% or 0.15% may not look dramatic on its own, but when several major lenders move in the same direction over a short period, the cumulative effect matters. Borrowers approaching the end of a fixed rate should compare the wider market rather than assume staying with their existing lender will automatically be the easiest or cheapest option."
Ranald Mitchell, director of Norwich-based Charwin Mortgages, said: "Halifax is the latest major lender to turn the screw. These may look like small increases, but they are heading firmly in the wrong direction and they add up quickly on bigger mortgages. For home movers and first-time buyers already battling affordability, higher fixed rates are the last thing they need. The message is simple: if you are planning to buy or move, do not assume waiting will make things cheaper."
Advice to Review Options Early
Tracey Dixon, buy-to-let mortgage specialist and owner of Cardiff-based Pure Mortgage and Protection, advised borrowers to examine their choices sooner rather than later. She explained: "Waiting for a cheaper mortgage can become an expensive gamble. Halifax's increases are another reminder that fixed rates don't simply follow the Bank of England base rate. For borrowers already stretching their budgets, even a modest rise is unwelcome."
"The increases also affect existing customers switching deals, so staying with your current lender shouldn't automatically be assumed to offer the best value. Comparing the rate, fees and overall cost remains essential. If your deal ends in the next three to six months, start reviewing your options early. Securing a suitable deal ahead of time can provide certainty, while your broker can check whether a better option becomes available before completion, subject to the lender's rules."
Elliott Culley, director of Hayling Island-based Switch Mortgage Finance, warned of potential further increases. He said: "Rates continue to trickle upwards as the uncertainty of the markets continues. A base rate increase in November is looking extremely likely as more bills are set to increase. The October budget will be the next big event and will have a significant impact on where rates could be headed moving into Q4 and 2027."
