Mortgages  

Halifax Intermediaries rolls out two-year fixed mortgage

Halifax Intermediaries has unveiled a new two-year fix for home-movers and a reduction in rates across a host of its mortgage products of up to 0.3 percentage points.

The loan is available for customers with a deposit of between 10 and 15 per cent loan-to-value at 4.14 per cent, with a £1,499 product fee.

The same deal is available at a reduced fee of £999, with an elevated fixed rate at 4.29 per cent.

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In addition, two-year fixes for first-time buyers and home-movers at a LTV ratio of 85 to 90 per cent has been lowered from 4.17 per cent to 4.14 per cent, with £1,499 product fee.

Five-year fixes at the same LTV range have also been reduced by 0.3 percentage points with rates from 4.84 per cent, with a £999 product fee.

Earlier this month, Halifax Intermediaries launched a two-year tracker product of up to 60 per cent LTV at 1.09 per cent for first-time buyers, home-movers and remortgage customers with a £1,499 fee.

Last month, the bank unveiled a five-year mortgage for first-time buyers, home-movers and remortgage customers up to 60 per cent loan-to-value.

This included a five-year fix at 2.39 per cent with a £1,499 product fee, and 2.54 per cent for remortgage customers with a 40 per cent deposit.

Other notable deals include a five-year fix up at 3.59 per cent up to 80 per cent LTV with a £999 product fee.

Provider view

Halifax head of intermediaries Ian Wilson said: “Halifax is committed to providing competitive products and great service to the intermediary market. Alongside the national rollout of our Service Excellence programme, the launch of a new two-year fixed rate and the reduction of rates within our two and five-year range demonstrate our ongoing dedication to helping customers save money by taking out a mortgage with Halifax.”

Adviser view

Kevin Dunn, senior partner at Furnley House, based in Leicestershire, said: “Cuts in fixed-rate mortgages can only be a good thing for brokers and their clients. The deals do appear very competitive. Halifax is a good lender to deal with. Its criteria are easily understandable and straightforward. Halifax is not a lender that constantly announces cuts in its mortgage products. It has faith in the quality service which it provides.

“It is good to have a reduced fee option – albeit at a higher rate. When we do deals, we look at the value of the mortgage and how long it will span for. Borrowers who are looking to take out a mortgage worth £400,000 over a long period would be better off taking a higher fee option for the sake of a lower rate.”

Charges

Charges range from £999 to £1,499.

Verdict

It appears that lenders are willing to delve deeper into their pockets to attract borrowers with small deposits. These are typically first-time buyers, eager to get out of their renting arrangements and climb onto the property ladder. Current rates for high loan-to-value loans would have been considered inconceivable four years ago, particularly in the years following the global financial crisis of 2007/8.