Penalty-free mortgage switch offer
Updated on 07 September 2008
Britain's biggest mortgage lender announced plans to allow customers with a tracker mortgage to move to a fixed rate one without having to pay a penalty.
Halifax said it was introducing a Rate Guard feature to its core tracker products from September 10, enabling borrowers who decided they wanted the security of a fixed rate loan to change their mortgage.
The offer, which is similar to one already provided by Lloyds TSB and the Royal Bank of Scotland Group, will initially only be available to new customers who take out a tracker directly with Halifax.
But the group said it hoped to expand the deal to also include people who took out their mortgage through a broker.
Under the terms of the deal people will not have to pay an early redemption charge to switch away from their tracker deal within 12 months of taking it out, although they will still have to pay arrangement fees of around £425 on their new fixed rate loan.
Jaedon Green, head of acquisition for Halifax, said: "Borrowers can be forgiven for not knowing whether to fix or track in the current market.
"This new addition to our range delivers the best of both worlds, allowing customers to select a tracker with confidence, knowing that they can switch to a fixed rate should rates reduce, or if their personal circumstances change."
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