Seven-year NewBuy fix offered by Halifax

Halifax is to extend its new seven-year, no product fee mortgage deal to all NewBuy customers.

The interest rate of 5.89% is fixed for seven years and is available to NewBuy customers through the Halifax branch network and selected intermediaries.

Stephen Noakes, mortgage director at Halifax, commented: "By offering a much more compelling deal, we are putting the purchase of a new-build homes back within the grasp of both first-time buyers and homemovers, while increasing our support for the NewBuy scheme; hopefully giving a much needed boost to housing supply."

Originally launched last week, the new longer term high LTV mortgage deal was made possible as a result of Halifax's participation in the government's Funding for Lending scheme - an initiative introduced to stimulate the UK housing market.

Halifax provides one in three mortgages in the NewBuy scheme, working alongside 23 housebuilders since joining the scheme in April 2012. These include the largest builders but Halifax also has one of the largest multi-user cell networks, ensuring that lower volume builders can also participate in the scheme.

A HM Treasury spokesperson said: "The Funding for Lending Scheme is helping ensure businesses get the finance they need to grow and create jobs, and that families have access to affordable mortgages. We welcome the news that Halifax is using the FLS to help people looking to get onto the property ladder at affordable rates."