by Mark Johnston
The Halifax has been reviewing its charges on a number of its products, as part of the Halifax review it has been decided to reduce charges on its fixed rate for both customers looking to re mortgage and also homebuyers.
Halifax is a trading name of Bank of Scotland, itself a subsidiary of Lloyds Banking Group. In the United Kingdom, the Halifax is used as brand for Bank of Scotland branches in England, Wales and Northern Ireland. Halifax is the United kingdom largest provider of residential mortgages and saving accounts. It is named after the town of Halifax West Yorkshire where it retains its headquarters. Its slogan is “A Little Extra Help
Before 17 September 2007, Halifax was a separate bank. It was previously the United kingdom largest building society, known as the Halifax building society.
Those customers who are looking to re mortgage their property a £160,000 mortgage on the three year fixed rate of 3.64 per cent will cost £461 per month for a total of 36 months only. For the four year fixed rate of 5.74 per cent will cost £1017 per month for a total of 48 months only.
There are other four year fixed rate deals one of which has a rate of 4.24 per cent due to fall in interest charged on loan to value (LTV) ratios of up to 60 per cent and for ratios higher than that the rate is 4.59 per cent
For those who do not understand loan to value (LTV). If you are wanting to buy a house for £100,000 and your mortgage lender will only lend you a 60 per cent loan which is £60,000 then the value is the amount of money you will have to find which is 40 per cent or £40,000 deposit thus loan to value (LTV)
This shows that most of the time only lenders with large cash deposits are eligible for low interest rates. Also within the range the Halifax have been reviewing, are the two year tracker home mover and re mortgage deals these are reduced to2.34 per cent.
On an £160,000 mortgage for a two year tracker at 2.34 per cent will cost £710 per month for 24 months this is not taking into account the fluctuations which may occur in the bank of England base.
Yet again these figures are dependent on loan to value (LTV) up to 60 per cent. All the products which have been discussed are available on loans up to the value of one million pounds, while all the re mortgage products include the Halifax re mortgage service which consists of a free valuation and no legal fees.
The Halifax commercial director of mortgages Stephen Noakes, said: “We are continuing to lower rates in order to provide the best possible value to first time buyers, home buyers and re mortgagers. These changes are part of a raft of improvements and reductions already this year, which will provide a much wider choice for those looking for a great deal.”
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