First-time buyer mortgage at 8.5% was a mistake, says Halifax | Money | guardian.co.uk

First-time buyer mortgage at 8.5% was a mistake, says Halifax | Money | guardian.co.uk

A mortgage charging interest of 8% above the base rate and purportedly intended for first time buyers has appeared on the Halifax website "by mistake", the company said.

The bank published the terms of the 95% loan-to-value loan on the intermediaries' part of its website, including that it had an early repayment charge equivalent to 6% of the outstanding loan, and offered a maximum loan of £7.5m.

Mortgage brokers reacted with shock, as although four lenders do offer 95% mortgages, their interest rates range from 5.99% to 6.99%, and are all fixed rates designed to protect the borrower against rising monthly repayments if the base rate goes up. The Nationwide building society is offering a comparable five-year fix at 6.64% with a £400 application fee or 6.84% without.