Query to people overpaying on a Halifax fixed rate deal

moominyak

Waldir wrote: »

At the start of your mortgage, if you didn't pay the initial mortgage fees but decided to "add them to your mortgage", they get added at the SVR, even on a fixed rate mortgage.

I took out additional borrowing in Jul, which was put on my 'new' rate as it was a different product.

The fees for the additional borrowing plus the fee for the new mortgage 'product' were indeed added to the mortgage so they went on the SVR.

So from mid-Jul until 31st Jul I had 3 different rates applied, until...

the 1st Aug, when the whole lot was consolidated and moved to the 'new' rate.

As an aside, I was led to believe that the fees would be on the 'new' rate like the additional borrowing :rolleyes:

But getting the new 'product' fee added to the loan at the same time as taking out the additional borrowing meant that I could get it all consolidated onto the new rate (as long as it all went through within 30 days of the extra funds being released).

Noz

Waldir wrote: »

Hi

I have another possible explanation, as it happened to me:

At the start of your mortgage, if you didn't pay the initial mortgage fees but decided to "add them to your mortgage", they get added at the SVR, even on a fixed rate mortgage.

Any change in the SVR affects this part of the mortgage, and slightly changes the amount to repay each month.


PS: it wasn't described in the mortgage t&cs, and I was able to retroactively pay these initial fees.

That's a good point, however if you specifically ask for fees to be added to your fixed rate, then the Halifax will oblige.

mau408

moominyak wrote: »

Thanks for that - tbh I'm not bothered about the term at the moment as I won't be able to reduce it by anything worthwhile, I'd rather just keep everything as it is and then perhaps look at a reduction in the term when I next remortgage (I'm on a new fixed rate now until Oct 2011). I think they said there would be a charge to reduce the term when I was trying to arrange a one-off OP over the phone (which it turns out I couldn't). I'll definitely find out about charges when (if!) I get to the stage of wanting to shorten the term though, so thank you

Not a problem. Every little helps. (As a MFW) Just on that note to you and others reading the thread I was surprised that when I reduced my mortgage term at Halifax I was able to specify it in years and months. So presumably you could say reduce it by a month or two which might not seem 'anything worthwhile' but I'd say better in my pocket than yours! (I'm sorry if that last sentence sounds nitpicky - tis not intended).