Halifax will launch on Monday a dedicated range of products for first-time buyers, quashing rumours that it was set to mirror First Direct and suspend lending.
Products on the first-time buyer range will include a five-year fixed rate deal at 5.69% at 90% LTV.
Although the UK’s biggest lender has also revealed that it will now penalise borrowers without a 25% deposit, placing an addition charge of 0.14% to the headline rate of any deal, it’s also incentivising those borrowers that put down more.
Anyone with a deposit greater than 25% will from Monday pay 0.1% less.
It’s also tweaked its LTV bandings. Previously it had two bands – 0% to 90% and 90% to 97% LTV. From Monday it will have three bands – 0% to 75%, 75% to 90% and 90% to 95%.
The changes will also be extended to HBOS’ prime ranges from Intelligent Finance and Bank of Scotland
Shane O’Riordain – group communications director at HBOS, says: “We believe this is the first product launch for first-time buyers that the market has seen for sometime. Halifax is the biggest provider of mortgage finance to first-time buyers and is very committed to remaining so.”
The move also crushes rumours sweeping the market earlier in the week that it was set to follow the lead of HSBC’s First Direct’s and suspend lending.
He adds: “We are very much open for business as these changes show. We take 20% of all UK lending – we expect to do the same this year.”