Changes apply to residential and buy-to-let mortgages such as the two-year fix at 60 per cent loan to value (LTV). The option with a £999 fee has been reduced by 0.45 per cent to 4.84 per cent while the fee-free option has received an equal reduction to 5.14 per cent. These are only available for purchase.
For borrowers with smaller deposits and equity, the five-year fix at 90 per cent LTV with no fee has been cut by 0.45 per cent to 5.09 per cent, while the £999 fee paying option has been lowered by 0.3 per cent to 4.94 per cent.
At 95 per cent LTV, the five-year fix with no fee has been cut by 0.2 per cent to 5.84 per cent.
Two-year tracker mortgages for purchase and remortgage at 60 and 75 per cent LTV have been reduced by 0.15 per cent and 0.2 per cent respectively to 4.09 per cent and 4.24 per cent. These have a £999 fee.
Two and five-year fixed remortgages have seen rate reductions of up to 0.5 per cent.
Santander also added a two-year fixed product to its residential remortgage range, available at 60 per cent LTV, priced at 4.84 per cent with a £999 fee.
New build, Help to Buy, product transfer and buy-to-let rates have also been reduced.
The rate changes apply from 17 January.
Halifax pulls plug on private shared equity
Halifax has announced that it will no longer accept mortgage applications for private shared equity schemes from 16 January.
This includes applications where the equity loan is provided by a private company, developer or builder.
In the last couple of years, a number of private companies have launched aiming to replace the outgoing Help to Buy scheme. Many of these companies claim to allow borrowers to obtain larger mortgage loans by lending above typical income multiples.
Halifax said it will continue lending to borrowers buying a home using an equity loan from a local authority, housing association or government scheme, which it said “is the majority of current shared equity schemes”.
