Halifax is to introduce a new ‘Rate Guard’ feature to all of its mainstream tracker mortgage products with effect from 10th September 2008, allowing borrowers to move, with no penalty, to a fixed rate product within 12 months of their mortgage commencing.

The ‘rate guard’ feature will be available for first-time buyers, home-movers and re-mortgagers, but will excluded buy-to-let mortgages and ‘stepped’ trackers.

Key Features
- Available on any direct acquisition tracker
- Option to transfer to a fixed rate mortgage within the first 12 months
- Customers pay no early repayment charge (ERC) on the tracker;
- Switchers can choose from the entire core fixed range available to existing Halifax customers – no restrictive LTV rules, no extra premium added to fixed rates for this facility

Jaedon Green, Head of Acquisition for Halifax, said: “Borrowers can be forgiven for not knowing whether to fix or track in the current market. This new addition to our range delivers the best of both worlds, allowing customers to select a tracker with confidence, knowing that they can switch to a fixed rate should rates reduce, or if their personal circumstances change.”

“The offer of the Rate Guard comes at a time when many borrowers are selecting Trackers to ensure any Bank Base Rate reduction is subsequently reflected in their mortgage repayments. However, many borrowers also seek comfort in knowing, should their circumstances, or indeed the market change, they will be able to get another mortgage that may better suit their lifestyle.”