Thursday, 7 July 2011

Halifax admits mistake at pitching first-time buyer rates at £8.5%...


An "accidental" offer to first time buyers of a mortgage, charging above the base rate at interest of 8% above the base rate has appeared on the Halifax website.

The bank released the terms of the 95% loan-to-value loan on their website, offering a maximum loan of £7.5m and stating that the terms involve an early repayment fee of 6% of the outstanding loan.

While four lenders are known to offer 95% mortgages, their fixed interest rates span from 5.99% to 6.99%, these are fixed in order to protect the buyer against increasing monthly repayments if the base rate was to rise. 

Nationwide building society is currently offering a competitive five-year fix at 6.64% with a £400 application fee or 6.84% without.

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