Halifax has launched a new product range which offers up to £1,000 in cashback to first-time buyers.
The product range, which is available now, includes a first-time buyer product with £500 cashback and a first-time buyer green home product with £1,000 cashback.
As part of this range, the bank offers a 2-year repayment and interest only mortgage with a max LTV of 60 at a rate of 4.60 per cent.
Meanwhile, its 5-year counterpart is available at 4.31 per cent.
This was received positively by Our Mortgage Broker director, Akhil Mair, who said: “Fantastic news from Halifax with their new first-time buyer incentives.”
He stated the “generous” cashback offers will “really help make home buying more accessible and appealing”.
Rebus Financial Services co-founder, Lee Gathercole, agreed and said: “This is very welcome news for first time buyers who tirelessly strive to save every penny in pursuit of homeownership.
“An additional £500 to £1,000 can significantly alleviate the financial burden of various fees along the way.
“This will be a big pull of many taking their first step on the property ladder.”
Barnsdale Financial Management principal adviser, Scott Taylor-Barr, added: “A healthy cashback is very appealing to many borrowers, but especially first-time buyers, who have to save a huge sum of cash now for even a relatively small percentage deposit.
“It’s the fees and other costs associated with a mortgage that they struggle with more so than the monthly repayments in many cases.
“A £1,000 cash back goes a long way to helping fund some of those costs.”
Caution
However, other brokers showed a degree of wariness about the bank’s latest offering, such as Charwin Private Clients director, Ranald Mitchell.
“The latest moves from Halifax will push the lender up the ‘best buy’ tables, however, it’s going to take far more than cashback to drive first-time buyers into action in numbers,” he warned.
“Halifax are regurgitating old tricks, attempting to invigorate a stale market, but this lacks imagination or innovation.”
A similar sentiment was shared by Albion Financial Advice director, Dariusz Karpowicz, who said: “Halifax’s new cashback offers for first-time buyers are certainly a pleasant perk, but let’s be clear, it’s just the cherry on top.
“While £500 or £1,000 cashback can sweeten the deal, it’s unlikely to be the deciding factor for anyone on the fence about entering the property market.
“To really turn the tide and encourage more first-buyers, we need deeper, more substantial measures.”
Self-Employed Mortgage Specialists SEMH director, Graham Cox, went further and said: “The Halifax are trying to fix a broken leg with a sticking plaster.
“Luring first-time buyers into the property market with more cashback will do nothing if the underlying cause isn’t addressed, lack of affordability.
“House prices are simply too high, particularly when mortgage rates have tripled over the past couple of years.”
