First time buyers hit by Halifax mortgage rise |
The Halifax announced that from Monday it will raise mortgage rates for new customers with deposits of less than 25 per cent. But the bank said that its new pricing structure would provide cheaper loans for customers with larger deposits.
A spokesman for the Halifax said: “There is some pricing upwards but it’s very much in line with the market.”
Louise Cuming at a comparison website says the average rate increase for a borrower with a 10 per cent deposit will be 0.2 per cent. “For a homeowner with a £100,000 loan, this would mean an extra £12.18 in their monthly repayments.
“Customers with just a 5 per cent deposit will see their rates increase by even more - around 0.35 per cent. On a mortgage of £100,000 this would mean paying an extra £21.39 a month.”
The move comes after a number of lenders have increased rates, or withdrawn from the market completely. The number of different mortgages available has fallen by 13 per cent since Monday as lenders pulled deals that were attracting too much business.
There are now just 4,679 types of home loan available, compared with 15,599 at the beginning of July. On Tuesday, First Direct withdrew its mortgage range from new customers. At the same time, the Co-operative Bank pulled all of its two year deals and Lehman Brothers’ two sub-prime divisions, Southern Pacific Mortgages Limited and Preferred Mortgages, effectively withdrew from the market altogether.
|
|
Added on 05/04/2008 12:01:58
|
|
|
 |
|
|
|