Halifax, Britain’s biggest mortgage lender is the last of the ‘big four’ lenders to put it’s fixed rate mortgage products out of the reach it’s customers.
In keeping with it’s rivals Halifax has raised the cost of it’s fixed rate mortgages from 5.59% in January 2008, to an uncomfortable 6.99% today.
Fixed rate mortgages have been around for years and in the early days it was possible to set your repayments at a fixed rate for the life of the mortgage. This proved to cost the Building Societies and Banks to such an extent that long term deals were withdrawn and replaced with shorter term deals mainly with 2 to 5 year fixed period.
Many customers have enjoyed the confidence of these schemes, knowing that their monthly repayments remain the same even if the general base rate rises or tumbles. With Bank’s now firmly in the driving seat and needing to account for every penny of profit, these schemes will fall by the wayside as interest rates continue to be the focal point of the UK economy.
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