Friday, April 4, 2008
Hot off the press – The latest decisive move by the UK’s biggest mortgage lender
Halifax to penalise borrowers with deposits of less than 25%
Halifax has introduced a new Loan to Value banding system which will see borrowers with less than 25 per cent deposit charged 0.14 per cent more.The lender will be introducing, from Monday, three LTV bands replacing its current two groupings. The first band will be for LTVs of 0 to 75 per cent, the second will consist of LTVs between 75 to 90 per cent, with the last at 90 to 95 per cent. HBOS spokesman says “We will reward customers for their prudence.”
Posted by jack c @ 01:48 PM (1140 views)
15 thoughts on “Hot off the press – The latest decisive move by the UK’s biggest mortgage lender”
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uncle tom says:
I would guess this is a positioning exercise – making it easy to raise the rate on – or pull out of – high LTV deals.
I take it they are already out of the 100% market..
p. doff says:
So, no problem getting a 95% mortgage. It’ll just cost you more – but wasn’t that always the case.
Anybody listen to the Jeremy Vine show this pm – financial phone-in with lots of very worried borrowers. One good example of a lady with Northern Rock who’s teaser rate is ending and the mortgage is going up from £600+ mth to £900+ mth. Basically, she fits into the category that the Rock is trying to get rid of, but due to credit rating nobody else wants her.
There will be a lot of people in this position which this government run bank is putting under repo’ threat.
Quoth says:
“We will reward customers for their prudence.”
Hallelujah! Will they also reward savers for their prudence? Hmmm…
p. doff says:
Oh! and they were still in denial about HPC. Spouting on about prices being on the increase (didn’t even qualify it by saying year on year) – no mention of the last 5 months falls at all.
jack c says:
UT – good observation
Halifax current maximum LTV is 97% with standard variable rate of 7.25%
I’m of the opinion that this move is to gently move customers into place so that if the need arises they can pull some products from their range and not others and at the same time alter rates at different LTV’s
I also expect the likes of Nationwide/Abbey/ C&G etc… to follow suit all of which makes it more expensive for borrowers
maddison says:
It must be annoying when a bank says we reward people who have been prudent. I reckon if you can save £20,000 pounds to buy an average home you have been very prudent! but If you are poor sod off!
renting2 says:
Sounds like they’re dusting off the old 1950s mortgage manual.
paul says:
Notice they’re not doing very much with their FTB products – weren’t we told they would be affected the most by the crunch?
The lies are all falling apart …
renting2 says:
What FTB products? What FTBers?
Rental John says:
On average wages you’d have to extremely prudent – so prudent in fact to have the good sense to stay well away from buying a house!
paul says:
Actually renting2, I didn’t read the article, but other sites say that they’re launching a new range of products to attract FTBs.
wage slave says:
@pdoff
Good point about about Northern Rock – AKA Gordon Brown – reposessing houses. I’d love to see the look on on the Spin Doctor’s face who gets that one to explain to the public.
paul says:
renting2
http://news.bbc.co.uk/1/hi/business/7330207.stm
paul says:
“Sounds like they’re dusting off the old 1950s mortgage manual.”
Very good. Yes I think thats exactly what they are doing. They’ll be reading it this afternoon.
alan says:
This LTV change will probably not affect those people trading up. If you bought your first home 5 or 6 years ago, you will probably have enough equity in the house to allow a 25% deposit on the next one, due to rising prices.
The problem arises in finding someone to buy that “first home”.