Best mortgage rates from Halifax reserved for those with high deposit

According to a recent report the Halifax has decided to reserve its most favourable mortgage rates for those that are able to put down a larger deposit on their loan, which could means that once again first time buyers and those with little in the way of savings will lose out as the mortgage market continues to experience problems. A number of lenders have recently decided to take this action, where they will only offer their best mortgage rates to those that can put down a deposit that is considerably higher than the traditional 5%.

In the past consumers could enjoy all sorts of mortgages, such as 125% mortgages, 100% mortgages, and more. However, mortgage for 100% and 125% of the property value have now been taken off the market, as the global credit crunch continues to bite and lenders continue to suffer liquidity problems. In addition to this the 95% mortgage is getting more difficult to find, with many borrowers who are unable to put down more than 5% faced with far higher mortgage interest rates.

The move from the Halifax will see three different tiers when it comes to mortgage interest rates. There will be competitive rates available for those putting down a deposit of over 25%, slightly higher rates for those putting down a deposit of between 25% and 10%, and the most expensive rates will be for those unable to put down more than a 10% deposit

The Halifax is one of a long line of lenders that have raised minimum deposits for their best deals. Many lenders have also been hiking up mortgage interest rates despite the base rate cuts between December and April, which have taken the base rate down by 0.75% in the space of four months.

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