Halifax to launch OMHB product

Halifax for Intermediaries is launching is Open Market HomeBuy proposition on Monday March 12.

This follows months of delays by the HBOS lender, which has repeatedly put off bringing its product to market since the scheme was first launched in November 2006.

The product combines a 75% conventional loan, a 12.5% loan funded by Halifax interest free for five years and thereafter priced at 3%, and a 12.5% interest free government loan.

The 75% loan is a tracker priced a 1% above base rate for five years, after which time it reverts to SVR of 1.5% above BBR.

The government recently admitted that since its launch, just 109 OMHB cases have completed although a further 6,000 are in the pipeline.

But the other three lenders participating in the scheme, Nationwide, Advantage and Yorkshire, say they remain committed to providing the products.