The bank is currently awaiting a judgement from the Financial Services Authority (FSA) for running a dual rates system, HVR1 and HRV2 . Halifax claim they set the system up with the long-term aim of transferring all customers to the lower HVR2, but critics claim it discriminates against existing customers at the expense of new borrowers.
The cause of the present controversy is a new discount mortgage offering a stepped discount over three years of 1.85%, 1.35% and 0.75% off its HVR1 rate, which is currently 5.75%. HVR2 is 5%.
Ray Boulger, a mortgage broker with Charcol, said: "I can't see that there will be any demand for this product. You have to wonder whether this launch is a defensive move to try and head off an adverse judgement by the ombudsman. The timing certainly looks like more than a coincidence."
Jason Clarke, a spokesman for Halifax, says: "We have launched a product which meets a gap in the market, for customers for whom annual interest would be a preferred option". He added that the new mortgage is 'a niche product', and only available through brokers.
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