Halifax launches new 1.5 year fixed rate mortgages
Halifax for Intermediaries has launched a new 1.5-year fixed-rate mortgage term targeting borrowers looking for shorter fixed-rate products.
Halifax's most competitively priced 1.5% fixed rate is available to borrowers with 40% equity in their homes, and it is priced just below 4.40%. The rate is around 4.60% for those with 25% equity in their homes and well over 5.5% for those with 10% equity in their homes.
The remortgage rates have £1,499 arrangement fees and are available for mortgages up to £2 million. When borrowers have 10% equity, the maximum loan size is £750,000.
The early repayment charges are 2% of the mortgage until 30/09/2025 and 1% until 30/09/2026.
Halifax Intermediaries & Scottish Widows Bank head Amanda Bryden says: “Brokers have told us that their clients are keen to see more shorter-term products. With this latest launch, we’re delivering the certainty of fixed payments balanced with a term that offers more flexibility.”
Why would anyone want a 1.5-year fixed rate?
There is a general expectation that mortgage rates will come down next year, and it seems likely that they will as the Bank of England base falls.
Bank of England Governor Andrew Bailey recently signalled that if inflation continues downward, the U.K. could be on track for four interest rate cuts over the next year.
Do other lenders offer short-term fixed-rate mortgages?
Santander and Barclays are two of the other big lenders offering one-year fixed rates to existing customers. Precise Mortgages also offers a one-year fix.
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The information contained within was correct at the time of publication but is subject to change.
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