Several major banks have recently updated their mortgage policies. Martin Lewis’s Money Saving Expert team has highlighted a crucial change for Halifax and Lloyds borrowers. These banks now allow customers to lock in a new mortgage rate only four months before their current deal ends, down from the previous six months.
With the Bank of England lowering its base interest rate, mortgage rates have been falling. Currently, two-year fixed-rate deals start at 4.25% and five-year deals at 3.88%, according to moneyfactscompare.co.uk.
This policy change aligns with similar moves by Nationwide and Santander, who also shortened their rate-lock period to four months. However, some banks, like Barclays, HSBC, NatWest, and Virgin Money, still offer a six-month window.
The Money Saving Expert team advises borrowers nearing the end of their mortgage term to check how early they can secure a new rate, even if they plan to stay with their current lender.
Other factors to consider when looking for a new deal include any upfront fees, restrictions on exiting the rate, and the potential risk of ending up with two mortgages if you don’t cancel your first deal on time. Late cancellations could result in hefty early repayment fees.
HSBC, for instance, recently reduced its mortgage rates, offering deals starting at 3.84%.
A spokesperson from HSBC had the following to say:
