New short-term option aims to offer borrowers a balance of stability and flexibility
Halifax has announced changes to its product range, introducing a new one-and-a-half-year fixed rate remortgage option starting tomorrow, November 28.
The new offering, the high street lender said, is designed to provide borrowers with a balance of stability and flexibility in an uncertain interest rate environment.
The new products, available with a £1,499 fee and offering £250 cashback, feature rates starting at 4.37% for loans up to 60% loan-to-value (LTV) and rising to 5.63% for loans up to 90% LTV. Borrowers can apply for loans between £25,000 and £2 million, except for loans exceeding 85% LTV, which are capped at £750,000.
Customers opting for these products must use their own conveyancer, as Halifax’s remortgage conveyancing service does not apply. For borrowers seeking terms of two years or longer, the conveyancing service remains available but without a cashback incentive.
“Brokers have told us that their clients are keen to see more shorter-term products,” said Amanda Bryden, head of Halifax Intermediaries and Scottish Widows Bank. “With this latest launch, we’re delivering the certainty of fixed payments balanced with a term that offers more flexibility.”
Nicholas Mendes, mortgage technical manager at John Charcol, called the introduction of a 1.5-year fixed rate product “an interesting move” that fills a gap in the market, where two-year fixed terms are typically the shortest available.
“This product allows clients to lock in a fixed rate while keeping their options open for a review slightly earlier than the standard two-year term, making it particularly appealing in the current uncertain rate environment,” he said. “It’s a clever addition to their arsenal, aligning well with the needs of borrowers seeking both security and adaptability.”
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