Mortgage News: Halifax Retains Market-Leading 3.79% Fixed Rate as Interest Rates Continue to Fall
Homebuyers and remortgagers benefit as Halifax holds firm on highly competitive fixed-rate mortgage offer amid declining market averages
In encouraging news for UK homebuyers and remortgagers, Halifax has held onto its market-leading 3.79% fixed-rate mortgage, cementing its position as one of the top choices for borrowers in a rapidly evolving mortgage landscape. With interest rates continuing to trend downward in spring 2025, Halifax’s decision to maintain this ultra-competitive rate signals growing optimism in the housing finance market.
The move comes as swap rates and funding costs fall, enabling lenders to cut rates across the board. Halifax, the UK’s largest mortgage lender, has opted to retain its headline-grabbing rate rather than trim further—suggesting both confidence in its pricing strategy and a focus on attracting long-term borrowers during a pivotal time.
1. The Current Mortgage Rate Environment: A Shift Toward Affordability
After two years of volatility in the wake of inflation and Bank of England (BoE) rate hikes, mortgage rates in the UK are finally softening. As of May 2025:
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Average 5-year fixed mortgage rates have dropped below 4.25%
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Some lenders are offering 2-year fixes under 4% for the first time since mid-2022
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Tracker and variable-rate deals are also becoming more attractive as the BoE base rate has eased to 4.25%, down from 5.25% in late 2023
This shift is bringing relief to borrowers who had been priced out of the market—or hesitant to move forward due to high monthly repayments.
2. Halifax’s 3.79% Fix: Why It Matters
Halifax’s 3.79% 5-year fixed-rate mortgage is not just competitive—it’s market-leading among high street banks, especially for borrowers with at least 40% equity or deposit (60% loan-to-value, or LTV).
Key Terms of the Halifax Deal:
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3.79% fixed rate for 5 years
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60% LTV maximum
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Product fee of £999 (waivable in some cases)
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Free valuation and legal fees for remortgages
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Available for purchase or remortgage
Why It Stands Out:
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Consistently ranks at the top of independent best-buy tables
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Combines a low interest rate with flexible repayment terms
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Supported by Halifax’s strong underwriting standards and wide branch network
3. Why Rates Are Falling Now
A combination of macroeconomic and market-specific factors is contributing to the downtrend:
Declining Inflation
UK inflation has continued to fall closer to the BoE’s 2% target, reducing pressure for further base rate increases.
Lower Swap Rates
Swap rates—the cost at which banks borrow long-term money—have dropped steadily since Q1 2024, giving lenders room to cut fixed mortgage rates.
Increased Competition Among Lenders
As the housing market stabilises, lenders are competing aggressively for a smaller pool of quality borrowers, pushing down pricing in key segments.
4. What This Means for Borrowers
First-Time Buyers
Halifax’s 3.79% rate isn’t directly available to those with small deposits, but it creates downward pressure on other LTV tiers, making rates for 85% and 90% LTV deals more affordable as well.
Remortgagers
Those rolling off previous fixed deals (especially from the 2020–2021 low-rate period) now have better alternatives than they did a year ago. A Halifax fix may now be lower than their current SVR or tracker deal.
Home Movers
The return of sub-4% fixed deals improves affordability, potentially unlocking housing chains and upsizing opportunities for movers.
5. Should You Lock In Now or Wait?
While rates are falling, borrowers are asking whether it’s better to secure a competitive deal now or wait for further drops.
Reasons to Lock In Now:
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Halifax’s 3.79% is one of the lowest on the market today—there’s no guarantee others will undercut it significantly
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Market volatility still exists (e.g., geopolitical tensions, energy price shocks)
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You can often secure a rate 3–6 months ahead of completion
Reasons to Wait:
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If the BoE cuts rates again later in 2025, lenders may follow suit
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Some borrowers are opting for shorter-term fixes or trackers in anticipation of lower future rates
Tip: Consider getting a mortgage in principle now, or lock in a deal with free switching options if lower rates emerge before completion.
6. Other Lenders to Watch
While Halifax currently leads, several other lenders are close behind in offering sub-4% rates for top-tier borrowers:
Barclays
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3.84% 5-year fix, 60% LTV
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Free valuation and cashback options
Nationwide
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3.89% 5-year fix, 75% LTV
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Loyalty discounts for existing members
HSBC
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3.95% 5-year fix with no product fee
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Strong digital application process
These alternatives may appeal based on fees, flexibility, or incentives, even if their rates are marginally higher.
7. Halifax’s Market Position and Strategy
Halifax, a subsidiary of Lloyds Banking Group, has long been a market leader in residential mortgage lending, particularly in the prime and remortgage segments. By holding steady at 3.79%, Halifax is signaling:
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Confidence in its pricing competitiveness
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Commitment to responsible lending
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Focus on maintaining market share in a more balanced mortgage market
This rate stability also reflects broader trends toward normalised interest rate environments after years of swings.
8. What Industry Experts Are Saying
“Halifax has struck a strong balance—this 3.79% rate is sharp, but sustainable,” says Sarah Coles, senior personal finance analyst at Hargreaves Lansdown. “Borrowers who need certainty over the next five years should seriously consider locking it in.”
“The fact that we’re seeing sub-4% fixed deals again is a vote of confidence in the direction of travel,” adds mortgage broker David Hollingworth of L&C Mortgages. “But the best deals won’t last forever—so timing is key.”
Conclusion: Halifax Leads as Market Heads Toward Stability
As of May 2025, Halifax’s 3.79% 5-year fix is not just a top performer in mortgage rate tables—it’s a signal that mortgage markets are stabilising after years of volatility. While some borrowers may wait in hopes of slightly lower rates, many will find Halifax’s offer compelling enough to lock in certainty now.
In a changing market, a competitive fixed-rate mortgage with a trusted lender can bring both affordability and peace of mind—and Halifax is clearly aiming to be at the forefront of both.