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SELL YOUR HOME QUICKLYHalifax compels mortgage applicants to open current accounts
Halifax, the UK’s largest mortgage lender, is now insisting that homeowners open current accounts if they want to qualify for bonds with small minimum deposits, according to a recent article in The Sunday Times.
This development – understood as an attempt by the lender to increase its cash deposits – will undoubtedly affect thousands of first-time home buyers by compelling them to switch banks in order to enjoy the best interest rates.
Furthermore, Halifax plans to increase its lending rates for direct business, despite the fact that the Bank of England decided to keep lending rates steady at 5% last week.
Essentially, mortgage seekers who want to pay a minimum deposit of less than a tenth of the total cost of their properties will have no choice but to open a high-interest current account – which will require them to pay monthly deposits of £1,000 or more.
“Wholesale money continues to be significantly more expensive than a year ago. Unfortunately, this increased cost needs to be passed on to new customers,” explained a spokesperson of Halifax.