Spotlight: Halifax 2.99% 2-year fixed rate mortgage
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Halifax is offering a two-year fix with an ultra-low rate of 2.99 per cent to those with a deposit of at least 40 per cent. However, while this may appear to be a best buy on the face of it, when you dig a little deeper it starts to look less attractive because of an arrangement fee of 2.5 per cent of the loan size. It therefore works out more expensive than other fixed deals with higher rates.
For example, someone taking out a £150,000 25-year repayment mortgage would pay £20,959 over the two-year term if they opted for Halifax's fix at 2.99 per cent (and £3,750 of that would be the cost of the arrangement fee). However, if they opted for Leek United Building Society's two-year fix at 3.59 per cent with a £799 fee, they'd pay £19,179 over the two-year term – £1,780 less.
This shows how important it is to avoid being blinded by the headline rate and to take time to check what fees are being charged. Sometimes a higher rate could actually work out better value over the term of the deal.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments