Halifax holds best mortgages for those with money

One of the nation’s leading mortgage lenders, Halifax, has joined the myriad of other lenders that have decided to take action against the losses from the credit crunch by reserving its most competitive deals for borrowers that have a large sum of money to put down by way of a deposit.

A range of lenders have recently decided that only those with a deposit of 10% or over will be eligible for the best rates, and this has made it harder for first time buyers and for those that only have the traditional 5% deposit to put down on a mortgage loan.

The new system that the Halifax has introduced involves three tiers of pricing based on the amount of deposit that the borrower is able to put down. This includes different rates for those putting down deposit of over 25%, a deposit of between 10% and 25%, and a deposit of under 10%, with the latter receiving the most expensive rates.

Over recent months first time buyers have been left high and dry after the withdrawal of 125% and 100% mortgages, which were popular for many years with first time buyers. Now, state experts, many could find it increasingly difficult to even get their hands on a 95% mortgage.