Halifax offering 1.88% two-year fix as ultra-low rates disappear
This rate has been withdrawn.
Halifax for Intermediaries is offering one of the most competitively priced mortgage rates now that many of the ultra-low fixed rates have disappeared from the market.
Over the last few months the big banks have increased the price of their sub-1% rates as the costs of funding has increased. This has in part been caused by the Bank of England base rate rising to 0.75%.
Halifax's most competitively priced mortgage is available to first-time buyers and home movers, and it is fixed at 1.88% until 30 June 2024. It has a £999 arrangement fee, and applicants will need a 40% deposit to qualify.
After the fixed period, the mortgage reverts to the lender's 3.99% standard variable rate, and the APRC is 3.7%. 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: “Even though the cost of fixed rates has increased they still offer good value for money. The margin between two and five-year fixes is minimal with Santander charging the same rates for its two and five-year fixes.”
Representative example: A capital and interest mortgage of £500,000 payable over 30 years, initially on a fixed rate basis until 30/06/2024 at 1.88% and then on a standard variable rate of 3.99% for the remaining 28 years,1.88% would require 26 monthly repayments of £1,818.24 followed by 334 payments of £2,345.11. The total amount repayable would be £831,801.25 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 3.7% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration. Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
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