Halifax Changing Interest Rate Method To +BoE

Not that it will affect me but .........

Just had a letter from Halifax stating that they are changing their charging method to linked to BoE rate. I now have a personal rate of 18.7% plus a BoE rate of 0.25%. Obviously no change to my current 18.95% but as interest rates are likely to head North in the near future will make a difference to some. A 0.25% rate rise is roughly 20p per £1000 per month.

Comments

  • EarthBoy
    EarthBoy Posts: 3,028
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    Halifax could raise their interest rate anyway, whether or not they link it to the base rate.
  • That's true, but it saves them having to send out a notice of variation.

    You won't be able to opt of increases cause by the BoE rate changes, as it's effectively a variable rate.
  • ManAtHome
    ManAtHome Posts: 8,512
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    Thought they'd done this a few years back?
  • They've been doing it for around 4-5 years now. I'm surprised they're still working their way through the accounts.
  • System
    System Posts: 178,076
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    My Clarity changed to this before the last BOE base rate cut, so it effectually benefited me (by 0.25%)

    Not that I actually borrow with it either, other than a few pence for ATM usage abroad.
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