Halifax about to re-price its mortgage range

Halifax, who is Britain’s largest mortgage lender is about to re-price its mortgage range, the bank now joins a long list of others who are re-pricing their mortgage range. Halifax is set to reduce the cost on some of their deals, while raising their fixed rate mortgages for those with a huge deposit. Halifax has now sent a note to mortgage brokers across the UK, letting them know that these changes will come into affect on Friday.

A spokeswoman from Halifax told Reuters “As a major mortgage provider, Halifax continues to focus on delivering good value products and rewarding customers for prudency.” However she did not give anymore details about the changes, many experts believe that these rates will fall by an average of 0.35 percent, with both of their fixed rate deals will rise by 0.10 percent. This move from Halifax along with other UK mortgage lenders is the result of the current housing market situation; most lenders are now looking for les risky borrowers.

Many mortgage lenders have had to withdraw thousands of their products from the UK market, as the credit crunch kicks in. Some of the things that British lenders have had to change are, scrapping cheap fixed-rate deals, reduce the maximum amount that people can borrow so no more 100 percent mortgages. Other changes include an introduction to higher-rate products, as well as toughing up on their criteria, making it even harder to get a mortgage.

With the news that 23,000 people are now in negative equity, these mortgage lenders are doing all they can not to allow this to get out of had, and scrapping the 100 percent mortgage is a great start. Also by introducing different deals, people have to think a lot harder before they jump into a life changing decision like a mortgage.