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Halifax launches 5.89% 7-year fix for FTBs

Halifax has launched a 5.89 per cent seven-year fixed rate mortgage up to 90 per cent loan-to-value that is available exclusively to first-time buyers.

There is no product fee and customers are eligible to receive £500 towards their moving costs.

Halifax says it has been able to offer the product as a direct result of receiving cheap funding via the Government’s Funding for Lending scheme.

The lender has also reduced a number of two-year fixed rate and tracker products for home movers, first-time buyers and remortgage customers by up to 0.2 per cent.

The changes to the two-year range include:

  • 60% LTV fixed rates for homemovers and FTBs are being reduced by 0.20% now starting at 3.09
  • 0-60 per cent LTV fixed rates for remortgage customers are being reduced by 0.20 per cent now starting at 3.19 per cent.
  • 75-80 per cent LTV fixed rates for  homemovers and first-time buyers are being reduced by 0.10 per cent, now starting at 3.59 per cent.
  • 0-60 per cent LTV trackers for homemovers and FTBS are being reduced by 0.15 per cent, now starting at 3.09 per cent.
  • 0-75 per cent LTV trackers for homemovers and FTBs are being reduced by 0.05 per cent, now starting at 3.59 per cent.
  • 0-60 per cent LTV and 0-75 per cent LTV trackers for remortgage customers are being reduced by 0.20 per cent with rates now starting at 3.14 per cent and 3.64 per cent respectively.
  • No product fee two-year trackers are also being introduced at 80 and 85 per cent for Homemovers, FTB and remortgage products.

Halifax Intermediaries head of sales Ian Wilson says: “We are providing brokers with a very competitive product enabling them to offer their first time buyer clients a 7-year product has been designed specifically with them in mind. With a 10 per cent deposit, the certainty of monthly payments over a long period, the removal of upfront fees and £500 cashback at a time when they need it most – this offers a real solution for aspiring homeowners.”

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  • Bobby 17th September 2012 at 1:27 pm

    I suspect the only people srlling this rate with be employees at the Halifax and Halifax property services. It is a disgrace. There will come a point down the line that lenders will go out of existance as the Halifax and many others are getting back far more in payments each year than they lend. So their book is ever diminishing. Eventually, 25 years at the longest but most likely well before then the lender will not longer be a going concern and will cease to trade. After all these people are meant to be ” lenders ” and hey have not lent anything for 5 years and counting.

  • Marcus Milne Home 14th September 2012 at 5:01 pm

    When will banks start to realise that we are not going to fall for this nonsense? Long term fixed rates do not make good advice for buyers with small deposits. Even with modest increases in house prices over time a buyer with a 10% deposit could be remortgageing onto cheaper 20% deposit rates after 3 years so why spend 7 years at silly high rates. Poor government advice on long term fixed rates a few years ago crippled first time buyers and now the banks are trying it again. Wake up and smell the market…..

  • john 14th September 2012 at 2:21 pm

    Not only will they coin it in on rate, think ofthe millions they will draw in ERC’s when the FTb’s move or split up within the 7 years. Of course it is us who are giving the advice, i have always gone against long term fixes for FTB’s as too many things can happen withthem, even to the point of explaining tha thtier rate may go up in 2 years, but they are only tied in for that period. as a amter of fact, a ftb client has just left the office amd i told him to get a 2 not a 5, never mind a 7. Ridiculous

  • colin 14th September 2012 at 10:35 am

    this is a cack deal……..why would anyone want to lock in to a 7 year fixed at 5.89%……if Halifax is your only option take a two year deal at 6.29% dropping to 3.99% after two years.

    Generally acknowledged thats rates are not going anywhere anytime soon.

    If I was Ian Wilson i d be none too happy at sticking my name alongside that press release!!!!!!!!!!

  • SOX 13th September 2012 at 8:22 pm

    Who are they trying to KID?????? I wouldn’t sell a client a 7 year fixed rate at just under 6% if my life depended on it, why because the rate is dreadful! I am fairly confident that I could sell them a 2 year fixed at 90% and after 2 years they’d be able to move to a more competetive product, especially if they make the effort to ‘pay down’ some extra equity. To tie someone in at a rate this high when it’s unlikely rates will rise for the next 5 years is riddiculous and to then actually ‘point out’ this bargain deal is available as ‘a direct result of receiving CHEAP FUNDING via the Government’s Funding for Lending scheme’ what rate was the CHEAP FUNDING levied at to justify them asking nearly 6%? it’s a joke. Why do we penalise our First Time Buyers with such extortinate rates, it makes absolutely no sense to charge these clients any more than any other LTV this whole ‘idea’ is wrong, and if I were first time buyer I’d save a bit longer or look at my affordability model as i might actually be able to obtain a personal loan for £10k at only a little more than 6% which i could then used to drop me into the 80-85% catagory and save a massive 2% on my mortgage interest rate, thus making the overall outgoing cheaper and far more flexible. BONKERS!

  • David Smith 13th September 2012 at 4:36 pm

    Ahhhhhhh. T.C.F.

  • David Smith 13th September 2012 at 4:36 pm

    Ahhhhhhh. T.C.F.