Halifax Mortgage

Halifax mortgage rise hits first time buyers

Halifax has announced an increase in the cost of home loans. The announcement has come after a week of expectations in the market. The decision has come as a surprise from Halifax, which is UK’s biggest lender. It is in line with other banks which have also announced increase in the cost of their home loans. All this may have been because of the on going turbulence in the mortgage market.

It has also announced to raise the mortgage rates for its customers who have a deposit of less than 25 per cent. Halifax declares that this change would result in cheaper loans for customers with more deposit money. The decision is in sync with the continuing trend of upward pricing in the market. This decision sums up to an increase of 0.2 per cent for an average borrower having deposit of 10 per cent.

This move may have been a result of the fact that a number of lenders have either increased the rates or withdrawn from the market. In fact, only 4,679 different home loans are available as of now as compared with 15,599 in July beginning. Other banks who have followed Halifax are First Direct, the Co-operative Bank. In fact, First direct announced withdrawal of the whole of its mortgage range from new customers.

Meanwhile, in a surprise event nearly two thirds of unsecured loans were granted to borrowers without a proof of their income. It has come as one of the findings of a survey in the past two months. The risks have increased as a result of leniency in credit checks in the processing of loan applications.

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