New Halifax 7 year fixed rate mortgage for NewBuy.

The Halifax has announced that its 7 year fixed rate mortgage offer has been extend to NewBuy customers.

This new mortgage offer is in addition to the Halifax's 2 year fixed NewBuy rates which are available for new build property with a 5% deposit.

For 95% loan to value for a 7 year fixed period the Halifax is offering a rate of 5.89% fee free, and as a further incentive the lender is also offering £500 upon completion.

The 7 year fixed rate mortgage was originally launched by the lender for would-be buyers with a 10% deposit, however the Halifax decided to extend its offer and add it to its NewBuy range.

A Halifax spokesperson commented on this decision advising that the lender is already at forefront of new build mortgage lending. It hopes by extending its 7 year fee free fix to NewBuy customers, it will prove a popular product.

NewBuy mortgages were initially offered by lenders signed up to the scheme for a 2, 3 and 5 year fixed term, however with funding costs have fallen over summer longer term fixed rates have been cut to attract customers.

A 7 year fix is appealing to home-owners wanting an increased level of security and peace of mind. However with a longer term fix it is important to check your offer carefully, to ensure you will not be caught out by an expensive early redemption clause. If you want to move before the end of your fixed term you might find this cost prohibitive if you have to pay a fee to your lender.

For a comparison of the most competitive fixed rate mortgages on offer, contact independent 'whole of market' broker Deal Direct.

Call a Deal Direct adviser today.