Halifax in UK launches 25 year fixed rate mortgage!

Halifax has launched its first 25-year fixed-rate mortgage set at 6.39 per cent. The Government earlier this year released a green paper which called on lenders to offer a wider range of long-term fixed rate deals.

The market has been dominated recently by short-term fixed rate deals, which revert to the lender's standard variable rate at the end of the fixed term. Brokers yesterday warned that the deal which carries a relatively high 3 per cent early redemption charge , did not offer the best value for borrowers.

This effectively forces borrowers to remortgage every two or three years, meaning they repeatedly pay the upfront costs and exit fees associated with taking out a new home loan.