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Halifax deal brings tear to the eye


Intermediary Exclusive 4.99% Two-Year Fixed

Type: Fixed-rate mortgage

Fixed term: February 28, 2009

Fixed rate: 4.99%

Minimum loan: £300,000

Maximum loan: Up to 85% of valuation subject to a maximum of £7.5m

Income multiples: Based on affordability

Arrangement fee: £1,499

Redemption fee: 3% of original loan in year one, 2% in year two

Introducer’s fee: Refer to lender

Tel: 020 7705 9466

This intermediary exclusive from Halifax is fixed at 4.99 per cent until February 28, 2009.

Park Row Associates sales director Kevin Paterson says: “I am normally a huge supporter of Halifax but in this case I think it has rather cynically launched this product to cash in on the media frenzy surrounding rates and in particular the lack of fixed rates.”

Paterson does not like the fact that the maximum loan- to-valuation is restricted to 85 per cent or the fact that the deal is not available to remortgages. “It is also charging an eye-watering arrangement fee of nearly £1,500 – what’s to like?” he says.

Looking for similar two-year fixed deals that could compete with Halifax, Paterson mentions deals from Northern Rock, Yorkshire Building Society and Bristol & West. These are attractive because they do not have the hefty up-front fees of the Halifax deal.


Suitability to market: Average
Competitiveness of rate: Good
Flexibility: Poor
Adviser remuneration: Average

Overall 7/10


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