Halifax launches sub-1% tracker and super-cheap two-year fix for mortgages up to £1 million
Halifax for Intermediaries has launched a market leading sub-1% tracker rate mortgage.
The 0.98% mortgage tracks the Bank of England base rate of 0.75% with a margin of 0.23%. It is available for property purchases, has a £999 arrangement fee and applicants will require a 40% deposit to qualify.
After the fixed-rate period, the mortgage reverts to the lenders 4.24% standard variable rate and the APRC is 3.7%. The maximum loan is £1 million.
Aaron Strutt, product director at Trinity Financial, says: “Halifax has taken the mortgage price war to another level by offering the 0.98% tracker rate. If you are looking for a two-year fix, Halifax's rate is 0.07 more expensive than the tracker.”
Should I take a fixed or tracker rate?
Halifax’s cheapest mortgages are so well priced there is not much of a premium to pay for the security of a fixed rate.
Many economists expect the Bank of England base rate to stay low for the next few years, especially if there is a no-deal Brexit.
If you think the base rate will come down from 0.75% over the shorter term and you can afford to take a gamble, the tracker might be the right option for you.
Does Halifax offer interest-only?
Halifax offers a range of interest-only repayment mortgages although it will want to know how the mortgage is going to be repaid.
The sale of the mortgaged property is one of the popular ways of repaying a mortgage, and application will need an income of £100,000 or more to qualify. Joint applicants will need to earn £150,000 between them.
The income requirement is calculated on the total of basic, overtime, bonus and commission for employed applicants or the latest year’s income for self-employed customers.
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