A spokeswoman for Halifax said: “There was an error this morning which resulted in three products showing incorrectly on the Halifax Intermediaries website.
“These were products that are not live, nor available to customers, and were showing due to a systems error, which has now been corrected.”
The product looked like it was available on a repayment basis only to homemovers and first-time buyers on loans up to £7.5m with early repayment charges of 6% for the full term of the loan.
Before Halifax had confirmed the product was an error, brokers were confused about why the lender would launch such an expensive deal.
Chris Gardner, director at mortgage broker Obligo, said: "This product is the Hara Kiri of home loans. Not only is the rate highly punitive in itself but if rates rise then payments could become unmanageable almost instantly.
“The fact that you're tied in for five years only increases the pain. First-time buyers — or indeed most buyers — should steer well clear, as it's a highly dangerous product given the fact that rates can only go in one direction.
“Even if they don't move for another year, they're certainly going up within the next one to two years and when the up-cycle begins it could be the end for the borrower. The final outrage is that the early repayment charge is 6% for the full term."
Melanie Bien of mortgage brokers Private Finance, said: “We are obviously seeing more activity in the 95% LTV space which is great news. But borrowers do need to be cautious.
“Taking a 5-year tracker is a huge risk – and at 95% LTV it makes more sense to go for 5-year fixed rate.
“Rates are only going to go up and this product will look even more expensive next year – particularly as you can’t get out of it without paying a big penalty.”
David Hollingworth, communications director at London & Country, said: “If this is a genuine effort to price a 95% deal then I don’t think it’ll attract a lot of business. High LTVs is something FTB crying out for but not at any price.”
Halifax confirmed that the maximum LTV across the range for new applications is 90%.
