Halifax's two-year fixed rates start from 4.78% and they are available for mortgages up to £2 million
Halifax for Intermediaries offers one of the most competitively priced two-year fixed rate mortgages at 4.78% for borrowers with larger deposits.
Many property buyers have been opting for two-year fixes rather than five-year fixes because they hope mortgage rates will come down soon.
The Bank of England's Monetary Policy Committee seems to be getting closer to reducing the base rate, which should, in turn, lead to cheaper mortgages.
Halifax for Intermediaries 4.78% mortgage is fixed until 30 September 2026 and it is available to borrowers purchasing a property. Applicants will need a 40% deposit to qualify, and the maximum loan is £2 million.
The product has a £999 arrangement fee, and early repayment charges apply. After the fixed period, the mortgage reverts to the lender's current 8.74% standard variable rate. The overall cost for comparison is 8.2% APRC representative.
If you want longer-term payment security and are buying a home, the lender's five-year fix is 0.33% cheaper. The lender has different rates for remortgages.
What mortgage income multiples is Halifax offering?
Halifax uses affordability calculations to determine the maximum loan size, although these are based on standard income multiples.
The mortgage loan size and credit score will also affect the income multiple whether you are employed or self-employed. Most borrowers earning less than £40,000 can generally borrow around 4.49 times their salary with Halifax, rising to 4.75 times their salary if you earn between £40,000 and £50,000.
For those earning between £50,000 and £75,000, the maximum income multiple is up to five times their salary, and for borrowers earning over £75,000, it may be possible to secure up to 5.5 times their salary.
Does Halifax offer interest-only mortgages?
Yes, Halifax does offer interest only, but there are strict qualification requirements. The maximum loan amount available on interest only is 75% loan to value. On part interest only/part capital and interest repayment, customers can borrow up to 85% loan-to-value with the balance on capital and interest repayment.
One of the most common ways to secure interest-only is to state the sale of the property as the repayment vehicle. However, homeowners need to have a way to repay the mortgage by the end of the term.
When using the sale of the property interest-only repayment vehicle, there is a minimum income requirement for sole applicants of £75,000 and joint applicants where one applicant has an income of £75,000 or more or has a combined income of both applicants is £100,000 or more.
Representative example: A capital and interest mortgage of £500,000 payable over 30 years, initially on a fixed rate basis at 4.78% and then on the lender's 8.74% standard variable rate for the remaining 28 years. The 4.78% rate would require 27 monthly repayments of £2,615.03 followed by 333 payments of £3,853.88. The total amount repayable would be £1,355,208.12 made up of the loan amount, plus interest (£858,365.81) and £999 (product fee), £125 (final repayment charge), £35 (completion fee). The overall cost for comparison is 8.2% APRC representative.
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The information contained within was correct at the time of publication but is subject to change
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