Halifax launches 25-year mortgage

Halifax has announced the launch of a new 25 year fixed rate mortgage set at 6.39%.

The mortgage lender already offers a 10 year fixed rate mortgage at 6.29%, with a product arrangement fee of £499. The 25 year deal comes with a product arrangement fee of £599.

Customers can overpay by up to 10% of the amount borrowed each year penalty-free. Or take a maximum of six payment holidays, subject to fulfilling the usual criteria. Or underpay to the value of any overpayments made on their mortgage.

Meanwhile, the loan is fully portable so that if the customer moves home they can take it with them and arrange additional borrowing at any time.

An early repayment charge of 3% of the outstanding balance for each of the first 10 years is in force. After this period, no early repayment charges are payable.

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2007-08-02 11:08:30 © Moneyextra.com