Halifax Launches New Mortgage Products for 2011

by Mark Johnston

A new year usually sees mortgage lenders falling over themselves to offer new loans to attract new customers. But 2011 has been exceptionally quite until now, the UK’s biggest lender the Halifax has just announced a new set of mortgage deals.

Amongst the new products is a two year tracker mortgage which is priced at a little under 2.5%. The home loan which has a fee of £995 at a rate of 2.49%  comes with a loan to value (LTV) of 60% so borrowers must have a massive 40% equity in their homes. At the same time the Halifax have launched a similar deal for those look for a fixed rate deal. The mortgage is 3.14% with a fee of £995 and again a loan to value of 60%. Those with an average priced property of £150,000 would require a £60,000 deposit.

The Halifax is also reviewing its existing mortgages and reducing the cost of some of them by up to 0.45% especially for those loans with a loan to value of 75% and more. Those borrowers who are lucky enough to own the home of their dream could check out some of the re-mortgage deals that the Halifax have. Re-mortgage customers could take advantage of a 4.24% two year fixed rate mortgage which is offered on a 75% loan to value basis. The great news is that the Halifax is offering the deal with no product or valuation fees and are throwing in free conveyancing too.

Those looking for a slightly longer fixed rate mortgage may be interested in their three year mortgage at 4.34% which is great as the fee is just £495 and the rate has been reduced by nearly half of a percent. Again the mortgage has a 75% loan to value but those with less equity in their homes have not been left out. The Halifax’s 85% loan to value option is a two year fixed rate which has been reduced by 0.45% to 4.34% and has a fee of £495.

Earlier this year the Halifax launched a new two year fixed rate mortgage.  The loan had a 5.79% rate for first time buyers looking to get onto the UK property market.

The Halifax has designed the mortgage especially for first in buyers in mind to help them take their first steps to owning the home of their dreams. First time buyers and those with smaller deposits have found it difficult to get a foothold on the UK property market since banks and building societies tightened their lending criteria. They hope that by offering a fee free mortgage its will save first time buyers up to £2,000 when money is tight.

Most first time buyers have to around £1000 in arrangement fees together with legal costs and valuation fees.

Stephen Noakes, the commercial director at Halifax said “First-time buyers are an important part of the housing market and whilst they are benefitting from the best monthly mortgage affordability in over a decade, buying a first home has always been an expensive process where every penny counts,”

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