by Mark Johnston
The Halifax has launched a new mortgage offer where it is offering new mortgage customers £500 towards their gas and electricity bills this winter. Last year was the coldest for 30 years o the move way well be a warm welcome to customers.
Anyone talking out a mortgage between 4th October and 5th November will qualify for £500 towards their winter bills. Only direct customers will get the help so customers going through a mortgage broker are stubbed again. The £500 offer can be claimed within a 6 month period of taking out a new mortgage but will not be paidn direct to the customer. Instead payments are made to the gas or electricity company so long as the borrower can produce a utility bill.
Commercial director of mortgages at Halifax, Stephen Noakes said: “We are committed to helping make homeownership easier for first time buyers, homemovers and remortgagers alike. There are numerous costs incurred with setting up or running a home and energy bills usually represent a significant chunk of household’s monthly outgoings.”
This is the first time the Halifax has offered money toward winter bills but have provided other incentives in the past. Previously the they have made a contribution towards council tax bills for mortgage holders.
To reward their existing customers, the Halifax are offering their current account customers discounts on the cost of a new mortgage. Current account customers have been promised at least a 0.2% discount on any new Halifax mortgage, this could be more depending on the type of mortgage which is taken out.
The Halifax’s best buy fixed rate mortgage is a two year deal at 2.79% (3.5% APR). The minimum loan to value is 60 percent so borrowers would need a fairly big deposit before they could take advantage of this rate.
Those looking for a longer term fixed rate mortgage may be interested in their 4.79% 5 year fixed rate mortgage that works out at 4.3% APR. Loan to value LTV) is 75% so borrowers wouldn’t require as larger deposit.
The Halifax offers a 90% loan to value 3 year fixed rate mortgage at 6.59% (4.5% APR) but first time buyers taking advantage of this would need to open either Halifax or Bank of Scotland account to be able to get the 90% mortgage otherwise they would only be able to borrow 85% of the value of their property.
They offer a range of other mortgages that require less than a 25% deposit which may be attractive to first time buyers looking to get onto the property market in the UK. Their 2 year fixed rate mortgage requires a deposit of between fifteen to twenty five percent at 5.79%. Anyone taking out this mortgage would need to pay a £995 product fee but the overall cost for comparison is a reasonable 4.1% APR.
The longer term deals are more expensive but give borrower peace of mind in regards to their monthly repayments. Their cheapest 5 year deal 6.04% with APR of 4.9%. Again, the mortgage requires a deposit between fifteen and twenty five percent and has a product fee of £995.
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