Halifax is introducing a brand new fixed rate loan for remortgaging, which is intended to provide people with some short-term stability while interest rates fluctuate.
This new loan comes with a fixed rate for the first year and a half. The rate will start from 4.37% for a 60% loan to value (LTV) deal. When it comes to remortgaging deals with LTV of up to 90%, the rate will start at 5.63%. In the majority of cases, the maximum sum that people can borrow will be £2 million, with the minimum being £25,000. The exception to that is where the loans have LTV of more than 85%, with those being capped at £750,000.
The products come with a fee of £1,499, but borrowers will be eligible for cash-back of £250. Anyone who takes up one of the mortgages in this range will have to secure a conveyancer themselves, however. Halifax does normally offer that service, but it will not be applicable to these loans.
Amanda Bryden from Halifax spoke to Mortgage Introducer about the new range, saying that:
“Brokers have told us that their clients are keen to see more shorter-term products. With this latest launch, we’re delivering the certainty of fixed payments balanced with a term that offers more flexibility.”
Others within the industry have also responded to the news from Halifax. Nicholas Mendes of John Charcol said that it would meet an existing product need.
Most of those with the CeMAP mortgage advisor qualification will welcome this mix of short-term stability and longer-term flexibility.
