Intelligent Finance (IF), the internet arm of the Halifax, has entered the market with a discounted flexible mortgage with an initial interest rate of 5.3%.
After the first six months the interest rate will revert to the lender’s SVR, currently 6.8%.
The mortgage has the full range of flexible features allowing borrowers to take payment holidays, increase their payments or repay lump sums and draw down on their repayments. Interest is calculated daily.
The loan is part of the IF product range which also includes a savings and current account.
Jennifer Blackwood, spokeswoman for IF, said that while the mortgage is available as a standalone product, customers that borrow and save with IF could minimise the interest on their mortgage payments.
She said: “If you have a mortgage and a current account with IF you can offset the interest on your mortgage with the balance in your current and savings account.”
Speed of service will also be central to the IF proposition, with a decision in principle being guaranteed in six minutes.
The mortgage is available to 95% LTV with eligibility based on affordability rather than income multiples. There are no redemption charges at any point in the term. Intermediaries will receive a commission of 0.35% of the loan as an one-off payment plus 0.05% every year for the next three years.
Contact: 0845 6094343
