Mortgage war ramps up as Halifax launches record 0.83% deal

1 min Read Published: 12 Aug 2021

Mortgage war ramps up as Halifax launches record 0.83% dealHalifax has launched a competitive new mortgage deal as lenders battle to offer the best rates on the market.

The two-year fixed rate mortgage comes at just 0.83%, making it the cheapest of its kind on record, just a week after the bank announced a market-leading 0.98% five-year alternative - although this one was only available for remortgagers.

Halifax’s new two-year deal is available for both movers and first-time buyers, with a maximum 60% LTV and an upfront fee of £1,499.

The so-called “mortgage wars” have seen rates tumble since the spring. Last month, HSBC and TSB both announced two-year mortgages at 0.94%, while Nationwide became the first to offer a five-year deal under 1%. On Thursday, HSBC introduced its own record-breaking two-year fixed rate mortgage at 0.89%.

Although lower interest rate mortgages can be tempting, bear in mind that they often come with a higher upfront fee and deposit, so you will find that you are expected to pay more in an initial lump sum to be eligible for the deal.

Nevertheless, many will be looking to take advantage of the record fixed-rate mortgages while interest rates are historically low, as rising inflation makes an interest rate hike in the near future increasingly likely. You can check out Damien's interest rate predictions for an in-depth overview of the UK's upcoming monetary policy, and how any changes could affect your mortgage.

If you are looking to make the most of the low rates, we have rounded up the 10 best 2-year fixed-rate mortgages on the market right now.

Best 2-year fixed rate mortgages

Lender Initial Rate Upfront Fee Monthly Payment
Halifax 0.83% £1,499 £1,107
HSBC 0.89% £1,016 £1,115
Nationwide 0.91% £1,499 £1,118
Platform 0.92% £1,549 £1,119
Barclays 0.92% £1,114 £1,119
NatWest 0.93% £1,025 £1,121
TSB 0.99% £995 £1,129
Progressive 0.99% £1,560 £1,129
Santander 1.00% £1,259 £1,130
RBS 1.04% £1,377 £1,136

Rates correct as of 12/08/21.