Halifax hits low savers with increased mortgage costs

The provider says it wants to “reward the most prudent borrowers” so will charge customers with a deposit between 20% and 24.9% an extra 0.14% on average. Borrowers with a deposit of 25% or greater will pay 0.1% less than previously. To achieve this Halifax has added a third loan-to-value (LTV) band, making the bands 0% - 75%, 75% - 90% and 90% - 95%. They replace the 0% - 90% and 90% - 97% bands. The move comes as the credit crunch increases pressure for borrowers although Halifax highlights about 70% of its customers put down a deposit of more than 25%. A spokeswoman for the provid...