Money News
The mortgage crunch that's disproportionately affecting first time buyers as loan availability either dries up or lenders impose tougher lending conditions, has taken a turn for the worse as new Halifax borrowers unable to cough up a 25% deposit will have to pay more for their loans. Those prepared to put down 25% or more will benefit, however.
Effective immediately - the maximum loan-to-value (LTV) offer will be 95% - down from 97%. That said, 97% deals will still be available in branches, but you'll have to pay 0.35% more.
Across Halifax's mortgage product range the interest rate on loans with a deposit of less than 25% will rise by an average of 0.14%. Halifax claims 70% of its new customers put down a deposit of more than 25%.
The changes will also be adopted across the Bank of Scotland and Intelligent Finance mortgage brands and apply to new mortgages, not the Halifax's 2.5 million existing customers.
Meanwhile, for those still wedded to the idea of a standard variable rate loan, Skipton has become the first major lender to charge a fee for one - its 6.7% offer now coming with a hefty £799 charge.
Normally this kind of fee will only be applied to a more attractive fixed rate or tracker mortgage deal. A depressing sign of things to come?
07 April 2008 © Moneyextra.com
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