Halifax has jumped on the flexible mortgage bandwagon with the Halifax flexible tracker mortgage.
Flexible tracker has a five year term and starts out at a rate of 0.35 per cent below the Bank of England base rate for the first six months. It then reverts to a rate of one per cent above the base rate for the rest of the term.
Aimed at all types of borrowers, it offers payment holidays, overpayments, underpayments, lump sum withdrawals and interest is calculated daily. There are no redemption penalties.
Although the Halifax says this is its first foray into the flexible mortgage market, it introduced a mortgage called extra choice in July 1999 that had many of the features of a flexible mortgage. However it calculated interest annually rather than daily and so was not marketed as a flexible mortgage.
Flexible tracker joins what is now a rapidly expanding area and offers nothing that makes it stand out from the rest of the market.