Halifax aiming to provide more longer term mortgages with 1.68% ten-year fix
Unfortunately, this rate has been withdrawn.
Halifax for Intermediaries has launched one of the cheapest ever ten-year fixed-rate mortgages designed to tempt more borrowers to take a longer-term rate.
Halifax's most competitively priced ten-year product is available to home movers, and it is fixed at 1.68% until 31 March 2032. It has a £999 arrangement fee, and applicants will need a 40% deposit to qualify.
After the fixed period, the mortgage reverts to the lenders 3.74% standard variable rate, and the APRC is 2.4%. The minimum loan size is £25,000 to access this rate, but the maximum loan is capped at £1 million.
Aaron Strutt, product director at Trinity Financial, says: "More home movers will be tempted by ten-year fixes at these prices, especially with lenders putting up their rates at the moment. In the past, many borrowers have locked into longer-term fixes and paid costly early repayment charges to get out of them, mainly because they wanted to switch to one of the super-cheap deals."
Halifax is one of a selection of lenders offering up to 5.5 times salary for higher earners, and the lender is known as one of the mortgage generous lenders when it comes to acceptance rules.
How do the early repayment charges work?
While this product is portable, it does have expensive early repayment charges, and they apply for the entire ten years.
The charge is 6% of the loan amount until 31/03/2027, followed by 5% to 31/03/2028, 4% to 31/03/2029, 3% to 31/03/2030, and 2% to 31/03/2031, followed by 1% until 31/03/2032.
Representative example: A capital and interest mortgage of £250,000 payable over 25 years, initially on a fixed rate basis until 31/03/2032 at 1.68% and then on a standard variable rate of 3.74% for the remaining 15 years,1.68% would require 25 monthly repayments of £1021.12 followed by 180 payments of £1,167.96. The total amount repayable would be £334,027.47 made up of the loan amount, plus interest (£82,475.76) and £999 (product fee), £100 (final repayment charge), £30 (completion fee). The overall cost for comparison is 3.3% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
Source: Halifax for Intermediaries
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The information contained within was correct at the time of publication but is subject to change.
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