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Halifax launching 95 per cent LTV deals next week and cutting rates

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  • 15/04/2021
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Halifax launching 95 per cent LTV deals next week and cutting rates
Halifax has confirmed it will be launching its range of 95 per cent loan to value (LTV) mortgages through the government’s guarantee scheme at the start of next week.

 

On 19 April it will go live with two-year and five-year fixed products for first-time buyers and home movers with a five per cent deposit.

There are £999 fee and fee-free versions of each product – the two-year fixes are at 3.73 per cent and four per cent respectively with the five-year options at four per cent and 4.2 per cent each.

Mortgages are available on a repayment basis only and are for loans between £25,000 and £500,000.

A maximum 4.49 times loan to income cap will be applied as part of the affordability assessment.

Current credit commitments will be deducted as ongoing in the affordability calculation even when declared as ‘to be repaid’ at or before completion, and the loan amount must be affordable with these commitments deducted as remaining.

 

Rate cuts and withdrawals

The lender is also updating its wider residential mortgage offering at the same time.

Selected rate reductions of up to 0.35 per cent are being made across its 60 per cent LTV band on two, three and five-year fixed rate first-time buyer, home mover and new build deals.

Among these, the two-year fixes with £1,499 fee and £999 fee for home movers and first-time buyers are being trimmed to 1.1 per cent and 1.11 per cent respectively.

The five-year versions will be reduced to 1.24 per cent and 1.28 per cent.

For new-build properties, the two-year fix with £999 fee is at 1.31 per cent, the three-year at 1.4 per cent and the five-year at 1.48 per cent.

Halifax is also withdrawing its two and five-year fixes at 60 per cent LTV for loans of more than £1m.

 

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