Halifax: Too good to be true?

Lieutenant_Thrift

After much agonising and research as an FTB who's had an offer accepted 12 days ago, including the employment of two brokers (incl. L&C.) it appears that Halifax have the perfect product which I was recommended by one of their advisors today:

*No booking or admin fees whatsoever bar the valuation (which I assume I would have had to pay as "the survey" anyway) which is costed at £575. No Mortgage account fee either.

*A rate of 2.69% fixed for two years (which, combined with the no fees policy, makes for the cheapest outgoings over the two years of any of the dozens of mortgages I've analysed over the last week or so)

*Cashback of £500 + £150 for being a current a/c holder with the potential for more if we take out life assurance/building insurance with them.

As an FTB, I'm very wary of any mortgage product (especially one recommended by an employee of a lender) and am somewhat bamboozled as to vast array of products (surely a glut of products) on offer which often appear to have very little to separate them. However, we do need to make a decision on who to apply to soon and I'm anxious that we're not left completely broke by the set up fees of buying our first home. Saving £995 or something like that on a "booking fee" would certainly be most welcome to us.

Does anyone have any advice on this product. I said I would give the advisor our decision on Friday morning.

Thanks,

LT

Caladan

A rate of 2.69% as a first time buyer? What's your loan to value (i.e. what percentage are you putting down as a deposit). I'd expect at least 3-3.5% for an 80/90% loan.

A fee free Mortgage isn't unusual (although this isn't fee free, they're charging you valuation), neither is a cash-back deal. For the life insurance I'd shop around regardless of any potential cash-back.

A valuation fee of £575 seems a bit hefty though unless you're buying a freakin' mansion or having a full Buildings Survey conducted (which may be a good idea, but it depends on the property).

Some of these figures just don't quite stack up to me...

Ruthhelenjohn

We have been offered more or less the same from the Halifax...
Got an AIP
Found a house, 100k deposit,
90k mortgage 2.69% 2 year fixed, no fee, £545 paid for full property check (not just valuation) we will get £150 cash back as have a Halifax account but we applied just before you by the sounds of things and instead of £500 cash back we should get our stamp duty paid!
Still waiting to hear if we definitely have the offer..:think::think:
I trust the deal so far.......
All the best!

Ruthhelenjohn

We are first time buyers....

Thrugelmir

You need to look at the LTV (loan to value) on the products. At 90%, the figures you are quoting don't appear right. Interest rate should be over 4% at this level.

Lieutenant_Thrift

Thanks for the advice. Our LTV is 75%. I heard about the deal where they paid your stamp duty, apparently it was withdrawn about 2 weeks ago, just before we had the offer accepted. Had we been able to go with it, would have saved us more than £1000.

John424

I'm no mortgage broker but I did see the Halifax in some best buy tables recently which is unusual.

ukcitizan13

Hello ,
Could you plz help with the Halifax page where they are offering 2.69 to first time buyer as the interest I can see is 3.24 minimum

Halifax.co.uk/morgages/first-time-buyers/fixed...

ukcitizan13

opps...got it. on other tab.

Thanks

Lieutenant_Thrift

My L&C broker said there are currently no lenders who pay Stamp Duty or legal fees. Is this correct?

ideal_knowledge001

Lieutenant_Thrift wrote: »

Thanks for the advice. Our LTV is 75%. I heard about the deal where they paid your stamp duty, apparently it was withdrawn about 2 weeks ago, just before we had the offer accepted. Had we been able to go with it, would have saved us more than £1000.

I got in with Halifax who are paying my stamp duty of £2300, but yeah that deal ended around 8th July but don't be too sad you haven't missed out on a lot as in the AIP for a 2 year fixed rate I have been quoted 3.2% unlike yours which is below 3%. My LTV is also 75%.

Nationwide fixed for 2 years on a 25% LTV is currently 2.44% maybe worth looking into every penny counts lol. I am currently buying a prop with an LTV of 70% fingers crossed where nationwide have some really good rates. Not all lenders have seperate rates for LTV=70%, so maybe worth looking into if you have some spare cash.

http://www.nationwide.co.uk/mortgages/interestrates-types/rates.htm?buyerType=ftb&propertyValue=200000&mortgageAmount=150000&mortgageTerm=25