First time buyer - Halifax mortgage - stamp duty

piccalilli82

Hi all, I'm a first time buyer and have recently had an offer accepted on a flat. I'm already some way down the process and have a mortgage offer from Abbey/Santander but have just spotted the offer from Halifax and am wondering whether it might be worth switching to them?

The Abbey offer is 3.74% fixed for 5 years, £995 booking fee (added to mortgage), £225 account fee with a free valuation survey and £250 cashback on completion.

The Halifax is 3.74% fixed for 2 years (or 4.59% for 5 years) with no product fees, aside from the valuation (£450ish) and they would pay the stamp duty of £1,550

The Halifax would seem a great deal in the short term (particularly the 2 year rate) but I would really prefer a 5 year deal (taking into account potential fees for remortgaging). I'm also worried about going back to the beginning of the process which would also mean paying back the Abbey valuation. I'm also buying an ex-council flat (although I think Halifax seem OK with this)

I have been using a broker (L&C) who was very much trying to put me off the Halifax deal but I'm not sure if this is because this deal isn't available through them! (still haven't found that out for sure)

I'm doing all this totally on my own so all helpful advice is much appreciated!

Serafinaaa

I think that the Halifax deal might be a direct deal only. I couldn't get it through my broker but he admitted it was better for me and let me go off and do itin my own. I have the stamp duty deal organised. Think my interest is lower though? 3.24% fixed for 2 years. Halifax have been great so far though. Really quick sending stuff out.

kingstreet

Nah. It's available across all channels. It was launched on 30 April 2013, so it would depend on when you applied. One applicant has to be a FTB and the purchase price has to be £125,001 to £250,000.

We do a lot of HTB business at 75% and the choices are (FRU761) fee-free at 3.59% fixed for two years and (FRU758) 3.19% fixed with a £999 fee.

http://www.halifax-intermediaries.co.uk/pdf/mortgage_guide.pdf#page=3

Serafinaaa

Mine is 80% LTV, fixed two years, 3.24%, no fees.

kingstreet

Serafinaaa wrote: »

Mine is 80% LTV, fixed two years, 3.24%, no fees.

Are you using Help To Buy?

My examples are based on such cases as that's what we're doing a lot of, at the moment.

There are several options as shown on the product guide I linked to. If there's a direct product at a slightly lower rate, that's par for the course, but the basic principle is that Halifax has stamp duty cashback products through all distribution channels.

pops5588

Me and my OH went for this Halifax offer, we sat with our broker and calculated everything and worked out that even though it wasn't the lowest interest rate, in the long term it was best for us financially not having to pay the £18000 stamp duty. And to be fair the rate that it goes up to after 2 years still isn't that bad (though i know it's variable).

kingstreet

pops5588 wrote: »

Me and my OH went for this Halifax offer, we sat with our broker and calculated everything and worked out that even though it wasn't the lowest interest rate, in the long term it was best for us financially not having to pay the £18000 stamp duty. And to be fair the rate that it goes up to after 2 years still isn't that bad (though i know it's variable).

£1,800, surely?

piccalilli82

Thanks all for your responses. Sounds like a few people are going for this deal. I am still dithering! I would still much prefer a 5 year deal for some certainty and I am a bit worried about starting all over again with a mortgage application (I got my other mortgage offer 2 weeks ago and don't want this to be the cause of any delays with the sale - although I don't think the vendors have even sorted out a solicitor yet despite accepting my offer 6 weeks ago! I guess that's another story!)

How long do you reckon it would be from application to mortgage offer?

Serafinaaa

Two weeks for Halifax from scratch. Just a day for me to get a different deal with them when I already had my original offer.

Rooney1b

This may seem a silly question, but can anyone clarify the definition of first time buyer with regard to this offer? Several years ago I bought a house jointly with brother, borrowing some money from my parents. I subsequently sold that to my parents and now I'm looking to buy something on my own. So I think I am a first time buyer (never had a mortgage with a bank or building society) but I'm not a first time owner. Does anyone know if I'd be eligible for the Halifax stamp duty offer?

kingstreet

Rooney1b wrote: »

This may seem a silly question, but can anyone clarify the definition of first time buyer with regard to this offer? Several years ago I bought a house jointly with brother, borrowing some money from my parents. I subsequently sold that to my parents and now I'm looking to buy something on my own. So I think I am a first time buyer (never had a mortgage with a bank or building society) but I'm not a first time owner. Does anyone know if I'd be eligible for the Halifax stamp duty offer?

You won't.

Definition;-

To qualify for a FTB product, one applicant must not have previously bought or owned a property (including inherited/bought for cash).