Halifax raises the benchmark for 0% balance transfer deals - no interest or fees for two years

Tom Wilson
5 July 2016

Borrowers looking to shift their credit card debt can now pay no interest or fees for two years if they sign up for the new Balance Transfer card from Halifax, subject to their credit status.

It’s the joint longest genuinely free balance transfer deal, though it has slightly more flexible terms than the AA Balance Transfer Card, which it matches. Halifax, for example, offers 24-months interest-free for all balance transfers over £100, while the AA only offers 24-months at 0% for people transferring more than £500.

However, only 51% of people who successfully apply for the Halifax deal will be offered the full two-year 0% interest period at 18.9% APR after. 

Other people who qualify for the card will only get a 13-month interest free balance transfer window and will be charged either 21.9% or 25.9% APR after.

The AA card charges 19.9% APR representative after the 0% period, though people who don’t qualify for the advertised rate will be charged up to 22.9% APR. All successful applicants will receive the full interest free period – 22 or 24 months, depending on the amount transferred.

Moneywise verdict

While this is the strongest deal if you can repay your card debt over two years, anyone looking to pay down a larger credit card debt might want to consider a longer interest-free period.
Several lenders, including MBNA and Halifax, offer interest-free balance transfers for up to 40 months. However, these deals typically have fees of between 2.5% and 3%, meaning a £3,000 balance transfer could cost between £75 and £100.


Also, don’t forget that if you go over your credit limit, or don’t make the minimum repayment each month, the card provider might cut your interest free-period short and start charging interest. 

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