Halifax will from tomorrow force borrowers with small deposits who do not use a broker to open a current account before they can get a mortgage. Sunday Times
The move, seen as an attempt to boost the bank’s cash deposits, will force hundreds of thousands of first-time buyers to switch their banking to the HBOS-owned lender if they want the best rates.
Halifax will also raise rates for direct business, even though the Bank of England kept interest rates on hold last week. Alliance & Leicester also raised rates on some of its deals last week.
Borrowers with a deposit of less than 10% of the value of the property will be told they have to open a High Interest current account. This requires a monthly deposit of at least £1,000.