Halifax Intermediaries is set to up its minimum loan size on two- and five-year loans to £100,000 on 19 August.

For example, two-year fixes start from 3.69% at 60% loan-to-value (LTV) and five-year fixes from 3.41% at 60% LTV.

Dimora Mortgages director Jamie Lennox describes the decision as a “strange move” that “we didn’t see coming”. 

Lennox says: “Of the lenders who have previously exited certain product areas, it’s typically been due to not being able to cope with the demand of applications they’ve been receiving. However, throughout this busy period, Halifax has maintained an impeccable service level, so it’s hard to see the rationale behind this move.”

“It seems that Halifax is going to be focusing on larger borrowing moving forward, which is going to be a more profitable area for them. Nevertheless, there is going to be a huge proportion of customers around the country who will no longer be able to access one of the biggest lenders for their remortgages.”

Meanwhile, Shaw Financial Service founder and mortgage expert Lewis Shaw says that while the change is not across the core range, it’s “an unexpected move”. 

Shaw comments: “With a number of lenders removing themselves from the market entirely, changing policy quickly and in many cases offering two-year fixed rates higher than five-year fixes, it’s important to get the right advice now more than ever.”

“A cynic might suggest lenders are dangling people a five-year carrot knowing that they could then hit them with an ERC stick if rates fall sharply to drag us out of the predicted recession.”