Halifax offering super-low 1.86% five-year fix remortgage rate

by Aaron Strutt

Nov 05 2018

Halifax for Intermediaries is offering one of the most competitively priced five-year fixed rate mortgages.

The 1.86% broker-only rate is fixed until 31 December 2023. At the end of this period, it reverts to the lender's variable rate currently of 4.24%. The overall cost for comparison is 3.40% APRC representative.

The mortgage has a £1,499 arrangement fee, and applicants will need a 40% deposit to qualify. Early repayment charges apply for the fixed period, and the maximum loan is £1 million.

Halifax will pay for the property valuation and cover the cost of the standard legal fees when you remortgage to the bank.

Aaron Strutt, product director at Trinity Financial, says: “If you are looking to purchase a property Halifax’s rate is actually 0.01% cheaper and it has a lower £999 arrangement fee.

“Many of the larger high street lenders are offering very competitively priced five-year fixed rates. They have eased their acceptance criteria over the last year to make it easier for applicants to qualify.”

Representative example: A capital and interest mortgage of £250,000 payable over 25 years, initially on a 1.86% fixed rate until 31/12/2023 and then on a variable rate of 4.24% for the remaining 23 years, would require 60 monthly repayments of £1,040.68 followed by 240 monthly repayments of £1,292.07.

The total amount repayable would be £374,156,60 made up of the loan amount, plus interest (£122,657.60) and £1,499 (product fee), £50 (final repayment charge), £35 (completion fee). The overall cost for comparison is 3.4% APRC representative.

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.

Call Trinity Financial on 020 7016 0790 to secure a mortgage