The UK’s largest mortgage lending institution, the Halifax, is planning to entice new customers by offering £500 towards their utility bills.
The offer, available to anyone taking out a new mortgage or a remortgage between the fourth of October and the fifth of November, can be claimed within 6 months of mortgage completion and will help towards paying electricity and gas bills.
To avail of the offer, customers will need to provide the Halifax with a current energy bill. This can be done online, over the phone or at its branches. Once received, the Halifax will pay the funds directly to the relevant energy company.
Existing customers are also being offered an enticement. Current account customers of the Halifax are to be offered a discount of at least 0.2% if they take out a new Halifax mortgage.
Borrowers with a 40% deposit can take advantage of the Halifax’s two year fixed rate deal at a rate of 2.79%. First time buyers who bank with the Halifax or Bank of Scotland can get a 3 year fix at a rate of 6.59% with just a 10% deposit but those who bank elsewhere need to put down 15% to take advantage of this rate.
Elsewhere, Tesco had hoped that its bank would be able to start offering mortgages by the end of this year. However, it now appears that the supermarket giant could have to wait up to 12 months for regulatory clearance as the FSA tightens its rules after the recession.
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