Halifax First Time Buyer 2 year fixed rate - 2.99% on 90% mortgage
1740°Expired

Halifax First Time Buyer 2 year fixed rate - 2.99% on 90% mortgage

348
Found 21st Oct 2014
Our mortgage advisor emailed me to let me know that Halifax are bringing out a new product on Thursday that hasn't been advertised as yet.

It's a special rate for first time buyers who have a 10% deposit, where you can get a mortgage at an interest rate of 2.99% fixed until 31st December 2016.

I don't think this will appear on the website, so best to ring up and ask for the details.

Hope this helps someone out.
Shared Via The HUKD App For Android.

348 Comments

Banned

I am on this rate too and I have 50% mortgage, got this rate last week fixed for 2 years

Banned

Oh and actually it was a remortgage and I was already with Halifax

This is for new buyers who usually are stung with higher rates. Good deal to get first foot on the ladder

Its a great rate, but just be careful you don't over-expose yourself, getting hooked in on a cheap rate can mean you will get a denting shock to your finances in 2 years time when you come to remortgage and the best rate you can get is more like 4-5% and interest rates will likely have risen by then.

That said, if you were going to be putting yourself in this situation anyway, and this is the cheapest deal then it really is a great rate for that size deposit.

Banned

honeymonster86

...in 2 years time when you come to remortgage and the best rate you can … ...in 2 years time when you come to remortgage and the best rate you can get is more like 4-5% and interest rates will likely have risen by then...


Halifax already got bored of waiting for the Bank of England interest rate to go up, and just put theirs up anyway for a lot of existing customers a year or two back...

sofiasar

I am on this rate too and I have 50% mortgage, got this rate last week … I am on this rate too and I have 50% mortgage, got this rate last week fixed for 2 years



im on the variable rate i got a mortage for 105.000 and owe 89.000 can i get this deal amd is there a fee

Might be better to go in at a 5 year fixed - however for now this is an amazing rate, improve your equity over the two years and remortgage with a higher LTV.


Its a great rate, but just be careful you don't over-expose yourself



Agree....What also is needed is more affordable homes and a politically push/shove/bomb up the, will to build them
We desperately need someone/anyone with a plan to re-create sustainable growth and thus a return to decent payed jobs
With slowing or no growth worldwide it's not looking good for anyone's future...

Sounds good. Available on "Buy to Let" mortgages?

Banned

honeymonster86

Its a great rate, but just be careful you don't over-expose yourself, … Its a great rate, but just be careful you don't over-expose yourself, getting hooked in on a cheap rate can mean you will get a denting shock to your finances in 2 years time when you come to remortgage and the best rate you can get is more like 4-5% and interest rates will likely have risen by then. That said, if you were going to be putting yourself in this situation anyway, and this is the cheapest deal then it really is a great rate for that size deposit.



Lenders don't just give you the money. Haven't you heard, the leading criteria is now much stricter and they ensure you can afford payments well beyond the current rate this also applies to fixed rate mortgages they want to ensure that they are lending responsibly.

Banned

cburns

Agree....What also is needed is more affordable homes and a politically … Agree....What also is needed is more affordable homes and a politically push/shove/bomb up the, will to build themWe desperately need someone/anyone with a plan to re-create sustainable growth and thus a return to decent payed jobs With slowing or no growth worldwide it's not looking good for anyone's future...



Affordable homes are useless as the problem is property is bring bought up by "investors" aka leeches who then add them to their "portfolio" and rent them privately or to local authorities.

That and the rich who already have a home buy a second home not to live in but to sit on and watch the value rise.

This needs to be addressed if the housing market is to ever recover and first time buyers have any chance.

lolyehright

Affordable homes are useless as the problem is property is bring bought … Affordable homes are useless as the problem is property is bring bought up by "investors" aka leeches who then add them to their "portfolio" and rent them privately or to local authorities. That and the rich who already have a home buy a second home not to live in but to sit on and watch the value rise. This needs to be addressed if the housing market is to ever recover and first time buyers have any chance.



Agreed, i think there does need to be some re-organization with regards to stamp duty/taxes. Maybe lower the tax for owners of just one property but increase the tax for multiple property owners? it should put off people from snatching up multiple properties.

Fantastic

sofiasar

Oh and actually it was a remortgage and I was already with Halifax



what was the product fee that was payable

Got it wrong...
Edited by: "kevzz" 21st Oct 2014

lolyehright

Lenders don't just give you the money. Haven't you heard, the leading … Lenders don't just give you the money. Haven't you heard, the leading criteria is now much stricter and they ensure you can afford payments well beyond the current rate this also applies to fixed rate mortgages they want to ensure that they are lending responsibly.



You are correct that they have tightened things up, but the very fact they are offering a deal with just 10% deposit is evidence enough that you can still get big loans on small deposits.

The issue here is that the smaller your deposit, the more vulnerable you are to shifts in interest rate.

Good rate for first time buyers I guess. But if you have more equity than the 10% then there should be other cheaper options out there.

I had used lcplc.co.uk/ in the past (as recommended by moneysavingexpert) to find out the best deals, as they give a no obligation options (tailored to your situation) of the best available products in the market. Worth a try before you decide on your most expensive outgoing expense.

Thanks OP, voted hot.

Just to give an idea of rates, I am on 2.19% rate 2 yr fix with a 50% LTV (booked around Jan 2014)

Edited by: "AstalaVista" 21st Oct 2014

Perfect timing!!

There no political will for this at all in Westminster X)
There is loads they could have already done but they are happy with house price inflation.

lolyehright

Affordable homes are useless as the problem is property is bring bought … Affordable homes are useless as the problem is property is bring bought up by "investors" aka leeches who then add them to their "portfolio" and rent them privately or to local authorities. That and the rich who already have a home buy a second home not to live in but to sit on and watch the value rise. This needs to be addressed if the housing market is to ever recover and first time buyers have any chance.

Great if you've got a 10% deposit. If you're renting it's increasingly harder to actually save a 10% deposit. Let alone all the other fees associated with moving in to a new home.

First buying is still very much a pipe dream for a lot of young adults

Great rate for 90% LTV, Any fees will have an impact!

I am 60% and just taking out a 2 yr at 2.49% with no fees

O2man

Great if you've got a 10% deposit. If you're renting it's increasingly … Great if you've got a 10% deposit. If you're renting it's increasingly harder to actually save a 10% deposit. Let alone all the other fees associated with moving in to a new home. First buying is still very much a pipe dream for a lot of young adults



I'm way past being a young adult and still struggling....


Good deal though and very attainable deposit....just takes time

honeymonster86

Its a great rate, but just be careful you don't over-expose yourself.



Oh er missus...

What annoys me is the fact that the banks are now being so careful now(door.. stable), it was them who gave us the problem. House prices are now high because they lent too much, now the market can't move because all they are prepared to loan is £100,000 on a £20,000 salary, you simply can't buy anything in many parts of the country for that money.

sofiasar

I am on this rate too and I have 50% mortgage, got this rate last week … I am on this rate too and I have 50% mortgage, got this rate last week fixed for 2 years



AT 50%, I'm sure you can do better than 2.99%! theres loads of deals around 1.6% at that level. HSBC have 1.5% fixed for 2 years.

kevzz

How does this compare to nationwides 4 year 2.99% fix rate for first time … How does this compare to nationwides 4 year 2.99% fix rate for first time buyers?



What is the LTV needed and fee for this product?

Original Poster

The best rate we could get with a 10% deposit was 4.29%. This is a bit improvement on that.

As others have said, interest rates will go up by the time the fixed rate is finished, but by that time will have enough capital to negotiate a better deal.

kevzz

How does this compare to nationwides 4 year 2.99% fix rate for first time … How does this compare to nationwides 4 year 2.99% fix rate for first time buyers?



If you think that your property is going to shoot up in value or you will be able to overpay the shorter mortgage could be the better option as you could potentially be able to remortgage with a better rate after the two years with a better LTV ratio. However this is a very good rate if I needed to stretch myself so I could not overpay I would go for the 4 year option. (If all things are the same eg 10% deposit etc)
Edited by: "MikeLondon" 21st Oct 2014

honeymonster86

Its a great rate, but just be careful you don't over-expose yourself, … Its a great rate, but just be careful you don't over-expose yourself, getting hooked in on a cheap rate can mean you will get a denting shock to your finances in 2 years time when you come to remortgage and the best rate you can get is more like 4-5% and interest rates will likely have risen by then. That said, if you were going to be putting yourself in this situation anyway, and this is the cheapest deal then it really is a great rate for that size deposit.



People have been saying rates will go up since 2009... the country seems stable on a lower rate so there isn't really the appetite to increase at the moment.

bdr868

The best rate we could get with a 10% deposit was 4.29%. This is a bit … The best rate we could get with a 10% deposit was 4.29%. This is a bit improvement on that.As others have said, interest rates will go up by the time the fixed rate is finished, but by that time will have enough capital to negotiate a better deal.

O2man

Great if you've got a 10% deposit. If you're renting it's increasingly … Great if you've got a 10% deposit. If you're renting it's increasingly harder to actually save a 10% deposit. Let alone all the other fees associated with moving in to a new home. First buying is still very much a pipe dream for a lot of young adults



Exactly, 10% deposit is a reasonable amount to put down as a first time buyer, any more is unrealistic, unless is not really fulfilling the buyers side of the agreement by putting up a reasonable amount of their own money.

bdr868

The best rate we could get with a 10% deposit was 4.29%. This is a bit … The best rate we could get with a 10% deposit was 4.29%. This is a bit improvement on that.As others have said, interest rates will go up by the time the fixed rate is finished, but by that time will have enough capital to negotiate a better deal.



'bit improvement'? It is more than 30% cheaper than what you are getting! It adds to quite a bit when you consider mortgage being the most expensive expense!

cburns

Agree....What also is needed is more affordable homes and a politically … Agree....What also is needed is more affordable homes and a politically push/shove/bomb up the, will to build themWe desperately need someone/anyone with a plan to re-create sustainable growth and thus a return to decent payed jobs With slowing or no growth worldwide it's not looking good for anyone's future...



I dont find any reason on why the housing prices have gone up. My salary has not gone up, but the prices of homes have gone up considerably which only says that things are no different between UK a developed economy and a developing economy. And the government doesn't bother about the supply of new homes thus creating demand. London has become over crowded - tubes, shopping malls, high streets are all over crowded. Tier 3 cities should be concentrated for development with infrastructure investment rather than developing a already developed place and making it over crowded.

winchman

Oh er missus...What annoys me is the fact that the banks are now being so … Oh er missus...What annoys me is the fact that the banks are now being so careful now(door.. stable), it was them who gave us the problem. House prices are now high because they lent too much, now the market can't move because all they are prepared to loan is £100,000 on a £20,000 salary, you simply can't buy anything in many parts of the country for that money.



£100,000 on a £20,000 salary is too much imo

how much could be per month on £160000 mortgage at that rate. thanks in advance.

Usually there is a nice big fee to get such rates. From experience, can't imagine the fee being anything less that £900 which is strategically a big number so very few people pay it up from and are forced to add to their existing mortgage balance. This means the fee will be payable over the remaining term of your mortgage and you'll be paying back thousands as oppose to hundreds. But then again, from the current options this option probably is the best.

winchman

[quote=honeymonster86] all they are prepared to loan is £100,000 on a … [quote=honeymonster86] all they are prepared to loan is £100,000 on a £20,000 salary.



I am surprised that they are prepared to lend that much! To be honest, I think lending five times salary is another reason why houses prices have shot up so much.

Before they build new homes they need to address how they're built. Why solar panels aren't a requirement on new build properties is a mystery to me.

Parking is a big issue too. They cram in as many houses as they can, giving 1 parking space or small driveway to 4 bedroom houses. There's a new build estate near me and the entire place e is littered with cars as the developers don't offer enough off road parking.

Issues like these need sorting before they continue to build more of them.

lolyehright

Affordable homes are useless as the problem is property is bring bought … Affordable homes are useless as the problem is property is bring bought up by "investors" aka leeches who then add them to their "portfolio" and rent them privately or to local authorities. That and the rich who already have a home buy a second home not to live in but to sit on and watch the value rise. This needs to be addressed if the housing market is to ever recover and first time buyers have any chance.


Affordable Homes usually have quite a few restrictions on who may buy them. For example, usually, if you already own another property, you cannot then buy an Affordable Home. Therefore, you shouldn't be able to have one home, buy an affordable home and then rent that affordable home out.

Some problems are these:

1. Net Immigration: We are adding 250,000 people to this country each year. They need housing, but we are not building enough. Therefore, we either need to restrict the number of people entering the country, or build more houses (both of which present their own problems).

2. Foreign Purchasing of Housing: This is particularly so in London. Wealthy foreign buyers are purchasing new housing stock, forcing up prices. They then do not live in the houses, or indeed, sometimes don't even rent them out.

Out of curiosity how do they check if you are a first time buyer?
I bought and then sold a house in 2003. Then emigrated but am back to buy now.

winchman

Oh er missus...What annoys me is the fact that the banks are now being so … Oh er missus...What annoys me is the fact that the banks are now being so careful now(door.. stable), it was them who gave us the problem. House prices are now high because they lent too much, now the market can't move because all they are prepared to loan is £100,000 on a £20,000 salary, you simply can't buy anything in many parts of the country for that money.



£100k on £20k salary is a lot as far as the ratio goes. I do agree however that it won't buy much in most parts of the country (or possibly will get you a house, but in an undesirable area).

The problem is house prices, not the lenders, as you say 5x a £20k salary is not enough...

I think another issue is that when you are renting, a lot of people can afford to rent a nicer place than they can afford to buy (due to high deposits needed and cost etc), so buying a house almost feels like a step back in terms of quality and living conditions. Either way, it's not easy for this generation.

Banned

Agreed
Post a comment
Avatar
@
    Text