| |
Mortgages -
Halifax Increases Mortgage Rate - 15/04/2008
|
|
| |
| |
Britain’s mortgage climate is set to get tenser as the country’s largest mortgage provider, Halifax increases the rates of its most sought after mortgage deals by 0.5 per cent from today.
This is coming just a week after a quarter point reduction to UK interest rates which analysts said has hardly made any impact on the current mortgage situation.
The Halifax increase will affect one of its two-year fixed mortgage deals, which will rise from 6.09 per cent to 6.59 per cent. This adds £46 a month to borrowers’ repayments on a £150,000 loan.
The rate will increase from 1.49 per cent above base rate to 1.99 per cent to give a current rate of 6.99 per cent on a two-year tracker.
Brokers are of the opinion that the move could sound the death knell for the popular two-year fixed rate deal, and will also suggest to borrowers that lenders want them to commit to a longer term mortgage.
The move, experts said, could mean that Halifax is no longer interested in the two-year mortgage business.
The lender will also reduce the maximum loan size for borrowers seeking two-year fixed deal from £7.5 million to £500,000. This will compel higher-net borrowers on to longer-term deals.
Halifax said the rates on three, five and 10-year deals would remain the same and that they are still available on loans that are worth up to £7.5 million.
Earlier Chancellor Alistair Darling had appealed to banks not to increase their rates in order to ease the worsening mortgage market in Britain. In return he promised them more help from the government.
|
|
|
|
|
| |
|
|
|
| |
| |
|
|
| |
|
|
| |
|
|
|
|
Mortgage Advice
|
 |
Call our mortgage advisers
0800 180 4638
|
|
Mortgage
Guides |
 |
|
|
|