Halifax mortgages - Halifax fixed and variable rate mortgages
Halifax Bank of Scotland (HBOS) is the fifth largest bank in the United Kingdom. Halifax is part of the HBOS group and is the UK’s top choice of mortgage lender. The bank has a good reputation for providing customers with a comprehensive home-buying service. This includes advice on budgeting, selecting a home and moving preparations.
Halifax offer a selection of fixed and variable rate mortgage deals to suit a variety of needs. Initial rates range from 4.99 to 5.74 per cent and the Annual Percentage Rate (APR) ranges from 7.50 to 7.70 per cent. A Halifax mortgage may offer an annual review, online tracking, Loan-to-Value (LTV) ratio of 90 per cent, daily interest rates, repayment holidays and 'no legal fee' re-mortgages. Halifax mortgages can be grouped into three main types:
| Mortgage Type | Features |
|---|---|
| Flexible Rate | Repayment flexibility |
| Fixed Rate | Repayment stability |
| Tracker Rate | Linked to the Bank of England base rate |
Halifax Flexible Rate Mortgage
With this halifax mortgage, repayments may be altered to suit the needs of the customer. Monthly mortgage repayments may be increased to pay off mortgage debt early. This will reduce the overall cost of interest payments. Alternatively, the customer may choose to take a repayment holiday or reduce their monthly repayments. Extra funds may be borrowed at the same rate of interest as the mortgage.
Halifax Fixed Rate Mortgage
This choice offers more security and involves less risk than a flexible rate option. The rate of interest and term of the mortgage will be set at its outset and will not change. This means that budgeting is easy and simple. The rate of interest paid will not increase or decrease in-line with the Bank of England base rate. This means that a fixed rate mortgage holder is protected against the effects of rate increases, however they will not benefit from the effects of rate cuts.
A fixed rate mortgage is not suited to a customer who may wish to pay their mortgage off early or seeks repayment flexibility.
Halifax Tracker Rate Mortgage
A tracker mortgage is linked to the Bank of England base rate. The interest rate charged will be higher than the base rate, but will rise and fall in-line with it. This sort of mortgage is beneficial if rates fall.