The product is available to all NewBuy customers at 5.89% fixed rate for seven years at 95% LTV with no product fee, no mortgage account fee and £500 cash back.
‘This seven year fixed rate mortgage provides the certainty of set monthly payments over a greater length of time. By offering a much more compelling deal, we are putting the purchase of a new build homes back within the grasp of both first time buyers and home movers, while increasing our support for the NewBuy scheme hopefully giving a much needed boost to housing supply,’ said Stephen Noakes, mortgage director at the Halifax.
He pointed out that the new longer term high LTV mortgage deal was made possible as a result of Halifax's participation in the Government's Funding for Lending scheme, an initiative introduced to stimulate the UK housing market.
He added that the Halifax has been a firm supporter for the house building industry, providing one in three mortgages in the NewBuy scheme, working alongside 23 house builders, more than any other lender since joining the scheme in April 2012.
Halifax works with a number of builders through the NewBuy scheme, including the UK's leading and largest builders. In addition to this, Halifax has also one of the largest multi-user cell networks, ensuring that lower volume builders can also participate in the scheme.
‘The Funding for Lending Scheme is helping ensure businesses get the finance they need to grow and create jobs, and that families have access to affordable mortgages. We welcome the news that Halifax is using the FLS to help people looking to get onto the property ladder at affordable rates,’ said a HM Treasury spokesperson.
Earlier this year Lloyds Banking Group announced the UK's largest commitment to first time buyer lending, confirming it will lend £5 billion to first time home owners by the end of 2012. Strengthening its support through the launch of this new First Time Buyer product, the Group, with the support of the government's Funding for Lending scheme, is committed to lending £500 million of funding at even more competitive rates.
In the first six months of the year, the Group helped over 25,000 people take their first steps onto the property ladder and this pledge will help over 50,000 people buy their first home by the end of 2012.
Meanwhile Santander has cut its mortgage rates by up to 0.20% on new business home buyer and remortgage deals. It has also launched a new 3.19% five year fixed deal at 60% LTV for all home buyers and remortgagers.
‘As a major UK lender, we strive to offer home buyers, both those looking to move home or remortgage, with competitive products and low rates. Our new two year fixed at 2.79% and 70% LTV is market leading whilst our competitive new 3.19% five year at 60% LTV is available to all home buyers and remortgagers,’ said Phil Cliff, director of Santander Mortgages.
‘We're always looking to help customers get on or move up the property ladder and these rates cuts demonstrate our continued commitment to the mortgage market,’ he added.
