Halifax launch new Tracker rate 5.14 percent

Halifax owned by HBOS has joined several other banks in increasing their margins on their Tracker mortgage products which has caused concerns with consumer groups and the government. Halifax pulled all its Tracker deals just before the surprise 1.5 percent interest rate cut by the Bank of England last Thursday.

Previous to the cut, Halifax pegged its tracker 1.04 percent over the BoE Base rate, now the tracker rate has been pegged 2.14 percent above the BoE base rate doubling the margin for the banks.

This is not the only change Halifax has made to its mortgage deals, you will now need 25 percent deposit if you want to go for a tracker mortgage, it’s highly likely that other banks will follow suit considering Halifax is the largest mortgage lender in the market, this could see the taxpayer having little to show for bailing out the British banking system.

Source: Financialadvice

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