Halifax Offer £500 Incentive to new Mortgage Customers

by Mark Johnston

Halifax offer £500 incentive to new mortgage customers.

In light of the current ‘mortgage war’ and today’s financial climate many of the nation’s biggest lenders have begun to offer different incentives in order to lure new customers to their products. It seems that Halifax Intermediaries are  no exception.

 They are offering borrowers who take out selected NewBuy, new build and shared equity products through them £500 towards the cost of moving home between August 31st and October 22nd this year.

This particular offer is part of an initiative by the lender to help reduce the cost of moving home for its customers, the £500 is paid as a cash back payment upon completion of the mortgage.

In addition to this offer, customers who instruct a solicitor using Halifax conveyancing will also be eligible to save an additional £200.

 Research has shown that the expense of moving home is now at its highest level since the peak of the housing market in 2007, with costs in the UK rising at a faster rate than house prices over the past decade.

Most home owners know that moving out of a home that they have lived in for a while can be very stressful. Getting organised and planning ahead can help to minimise the stress levels.

If a home owner chooses to use a professional to help them move out the cost may depend on a number of things, such as:

–         the quality of possessions to be moved

–         whether they pack for them

–         how assessable the house is

–         how far away the home is

–         whether or not storage is required

The latest research carried out by the UKs largest mortgage lender, Halifax, found that the cost of moving home has increased by 60 per cent over the past 10 years

Propertyfinder.com also suggests that home movers should expect to pay around £500 for a one bed roomed flat to £2,000 for a five bed roomed house in removal costs. In addition, customers who instruct a solicitor using Halifax conveyancing will also be eligible to save an additional £200.

Lloyds TSB research has shown that the average cost of removal is around £1,110 when using a professional removal company.

Ian Wilson, Halifax Intermediaries head of sales says: “Many homebuyers budget for major costs such as stamp duty and estate agent fees when purchasing a property. However, sometimes many other costs, such as removal costs can catch buyers out and add further pressure to tight purse strings”.

Most people should however realise that lenders do not give away money for nothing and there has to be a reason behind any offer. Therefore many financial experts are warning that more often than not, deals that offer incentives are far too good to be true and borrowers will soon find that there is an ugly catch.

Many lenders use incentives like this to make their least popular and least competitive products look better.

In further support of the first time buyer market the Halifax has also reduced its 2 year fixed rate mortgages by 0.20 per cent.

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