Halifax’s reversionary rate for new borrowers has received a mixed reaction from brokers.
It is launching a 3.99% Homeowner Variable Rate that is not linked to the base rate on January 4. Existing customers will remain on the 3.50%Standard Variable Mortgage Rate.
Stephen Noakes, commercial director of mortgages at Lloyds Banking Group, says: “The HVR will enable us to continue to offer a wide range of competitive products.”
Rob Barwell, mortgage adviser at Newholme, says borrowers’ monthly payments could rise significantly. He says: “I feel that this is penalising new borrowers.”
But Ketan Yadav, mortgage consultant at Avenue & Co Private Finance, says: “It is fair because new offers state variable rates can rise and most borrowers expect this.”