The lender, which launched a number of first time buyer initiatives in 2011, including its First Time Buyer Pledge, said it has specifically designed the product to help first time buyers in 2012 by paying the fees on their mortgage, as well as offering cashback of £500 to help cover other costs of buying their first home.
Today's first time buyer typically pays a product fee of around £995, but Halifax said it is waiving that fee and offering £500 cashback, which can be used to pay those addition home buying costs, including conveyancing and valuation.
‘Housing affordability is at an eight year high for first time buyers at the moment, largely as a consequence of the fall in house prices since 2007. However, buying a house has always been an expensive process and for first-time buyers every bit of help counts,’ said Stephen Noakes, Mortgages Director at Halifax.
By waiving the fees on this product, and offering £500 cashback, we can give first time buyers the chance to put that money towards supplementing their deposit or purchase some essentials for their new home,’ he added.
In addition to the £500 cashback offer available to all successful first time buyer applicants, Halifax will also offer its current account customers an additional £150 cash back on completion.
Product details include: New 2 year fixed rate at 5.99% for first time buyers
available between 85 to 90% LTV; No product fee, No Mortgage Account Fee; early repayment charge of 3% in year one and 2% in year two with a maximum loan amount is £1,000,000. It is available on a repayment basis only.
‘At Halifax, we thought it was a sensible idea to start the year with a great offer for first-time buyers. The total numbers of first time buyers is currently at a low level across the UK and it clear that first time buyers need more help to achieve their home buying aspirations. It is therefore very important that, as an industry, we continue to offer flexible, competitive products. Our no fee, cashback product for first time buyers will provide another option for those wanting to get onto the housing ladder,’ added Noakes.
