View more on these topics

Halifax rate rise for new loans

Halifax is increasing its reversion rate for new mortgage customers from January 4.

The new rate, which is called the homeowner variable rate, is priced at 3.99 per cent. Existing Halifax customers will remain on the lender’s current standard variable rate, which is 3.5 per cent.

New customers taking a mortgage from January 4 will not revert to the homeowner variable rate before 2013.

The rate does not have a cap and is not directly linked to Bank of England bank rate. It allows unlimited overpayments without any repayment charge. Halifax says the move “reflects the ongoing higher cost of funding, in both the wholesale and retail markets”.

Lloyds Banking Group commercial director of mortgages Stephen Noakes says: “In light of market conditions, particularly ongoing higher funding costs, we have introduced this new rate for new mortgages. This increased cost of funding is reflected in this new rate, while remaining competitive for borrowers.

“Customers will not revert to the new rate before January 2013 at the earliest. Introducing the Halifax homeowner variable rate will enable us to continue to offer a wide range of competitive products.”

Chadney Bulgin mortgage partner Jonathan Clarke says: “It is a shame but I think they are just aligning themselves with other lenders. It was inevitable.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com