Halifax Intermediaries has reduced rates on its first-time buyer mortgage products.
The cuts will apply to its two and five-year 90 per cent loan-to-value first-time buyer deals, down by 0.3 per cent and now beginning at 3.19 per cent.
This includes Affordable Housing Shared Equity/Shared Ownership products.
Ian Wilson, head of Halifax Intermediaries, said the moves were made to demonstrate the firm’s commitment to helping one in four first-time buyers take their first step onto the property ladder.
The current 1 per cent cashback incentive remains of up to £2,000 for first-time buyers across the product range, including New Build, the Affordable Housing range and both Help to Buy schemes.
Those taking out a qualifying mortgage receive payment of 1 per cent of their total loan amount up to a maximum of £2,000 as cashback into their bank account within 30 days of the mortgage completing.
As the Affordable Housing and government schemes are included within the offer, this means borrowers can purchase a home with deposits from a minimum of 5 per cent and also receive 1 per cent cashback on the whole mortgage loan, up to a maximum of £2,000.
Adviser View
Nick Green, a broker at Alternative Estates & Financial Services, said Halifax had to reduce rates at 90 per cent LTV in order to get in line with other large high street lenders.
He said: “Consumers are more savvy now and I think the majority of buyers have saved their own deposit, so whilst they don’t have much spare cash, they are very suspicious when they are offered cashback and they don’t understand why it is being offered, then they ask where they are paying for it behind the scenes.”
peter.walker@ft.com
