Halifax reprices mortgage range

Britain's biggest mortgage lender is increasing rates for people with smaller deposits, although those with larger ones will pay less.

Homeowners will be charged up to 0.35% more for borrowing between 90% and 95% of their property's value than under its current mortgage range, while those borrowing between 75% and 90% will pay an average of 0.14% more.

The winners will be people who have a deposit of at least 25%, which Halifax said accounted for 70% of its customers, as rates for them will typically fall by 0.1%.

The group previously had just two mortgage tiers, with different rates for loan to value ratios (LTVs) of up to 90% and between 90% and 97%.

It will also no longer be offering loans through brokers to people wanting to borrow 97% of their home's value, though these deals will still be available in branches at 0.35% more than now.

The change, which comes into effect for new customers on Monday and includes Bank of Scotland and Intelligent Finance mortgages, follows a similar move by Nationwide earlier this year, under which customers need at least a 25% deposit to qualify for its best rates.

Halifax's increase in the rate paid by borrowers with less than a 10% deposit will add more than £500 a year to a £200,000 home loan.

However, the group is also launching a new range of mortgages on Monday specifically aimed at first-time buyers, including a five-year fixed rate deal of 5.69%, which it claims is one of the most competitive rates available.

The announcement ends a turbulent week for the mortgage market, which has seen the number of different products available dive by 13%, excluding the changes to the Halifax range.