Halifax launches unusually short fixed-rate mortgage | Personal Finance | Finance [Video]

Home loan giant Halifax is launching a new and unusually short, fixed rate mortgage to help buyers worried about interest rate volatility.

The interest rate will be fixed for 1.5 years rather than the conventional two, three or five years. The new deal comes against the background of reports that mortgage rates are relatively high at the moment and likely to fall over the next few years.

Launching a fixed rate running for 18 months means people looking to buy now can look forward to remortgaging onto a lower rate when it comes to an end, presuming forecasts prove to be accurate.

The new shorter term mortgage comes with £250 cashback, however, there is one significant drawback as buyers will have to find their own solicitor to manage the deal, rather than relying on a free service provided by the Halifax.

Mortgage brokers welcome the move, however some suggested it was a stunt.

Iain Swatton, Director at Exemplar …