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Halifax launches two products for NewBuy

Halifax has become the fourth lender to launch a range of 95% LTV deals for the government’s NewBuy Guarantee scheme.

In March NatWest, Nationwide and Barclays were the first three lenders to launch products for the scheme.

NatWest only offers its products direct, while Barclays is offering its deals through a limited number of brokers and Nationwide has given access to all intermediaries.

Halifax has confirmed it will only offer its products through brokers on the builders’ panels.

It is working with nine builders but says some 40 broker firms will have access to the products.

Under the scheme, lenders offer 95% LTV mortgages for new-build properties against a mortgage indemnity guarantee funded jointly by builders and the government.

Halifax will offer two products from today – a two-year fix at 5.99% with a £999 fee and a two-year fix at 6.39% with no product fee.

Stephen Noakes, mortgage director at Halifax, says: “As the leading lender in the new-build market, we’re proud to be supporting the NewBuy scheme.

“NewBuy will put the purchase of a new-build home back within the grasp of both first-time buyers and home movers, and will provide a much needed boost to housing supply.”

However, Halifax’s NewBuy deals are not as competitive as others on the market.

NatWest offers a two-year fix at 4.79% with a £499 fee, and a five-year fix at 5.49% with a £499 fee.

Nationwide has a three-year fix at 5.89% with a £900 product fee and a £99 booking fee, with first-time buyers receiving a £500 product fee discount.

Stuart Gregory, director at Lentune, says: “The rates represent how involved the lenders want to be with the scheme. Halifax does not seem to be seeking much business at the moment.”

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  • anon 17th April 2012 at 2:19 pm

    I don’t care, nobody can access newbuy anyway. Obviously this is TCF because limiting the brokers a client can use is so incredibly fair.