Halifax bank interest rates

GoldenEye

I appreciate some advice if possible, hopefully someone in the same position as me. I cannot find any similar examples on the internet.

I'm a first-time buyer and I am due to complete on 8th September. The whole process has been fine but my only problem appears to be the mortgage in that the interest rate keeps changing due to the problems with the mortgage market.

I have taken out a 5-year fixed-rate capital repayment mortgage with the Halifax bank. My initial rate (mortgage in principle offer) was 5.49% in April. When I found a house the previous rate had been removed from the market. I then was offered a 6.26% rate. Less than two weeks ago the mortgage rate reduced to 6.06%. I contacted my Halifax mortgage advisor and she reduced the rate accordingly. I checked the rates yesterday and it is now 5.79%. Obviously, I want the lowest interest rate before completion as it would help me.

My question is am I entitled to this new rate with just over 1 week left because I haven't signed anything from the Halifax yet? I know that any amended offer must not only be sent to me but also to my Solicitor.

On the amended mortgage offer sheet, it says:
"the interest rate applicable to this mortgage can go up or down. We will not notify you of any change in rate(s) between the date of this offer and the date you take out the mortgage. We will confirm the rate(s) when you take out the mortgage."

Do I "take out the mortgage" on the day of completion or before then? The loan amount will stay the same it's just the interest rate that is changing.

Will the interest rate be confirmed at the present rate currently being offered on the market?

Many thanks in advance.

Tiddler_2

Basically No!

You will get the last rate you asked for, if the available rate has gone down since then you need to contact the Halifax again to get the latest rate.

Ian_Griffiths_Halifax

GoldenEye wrote: »

I have taken out a 5-year fixed-rate capital repayment mortgage with the Halifax bank.

On the amended mortgage offer sheet, it says:
"the interest rate applicable to this mortgage can go up or down. We will not notify you of any change in rate(s) between the date of this offer and the date you take out the mortgage. We will confirm the rate(s) when you take out the mortgage."

The two don't tally. I'd check that you do actually have a Fixed Rate now. It may be possible that you were looking at a Fixed Rate before you applied but after the application has been submitted you've been given a Base Rate Tracker.

GoldenEye

Ian_Griffiths_Halifax wrote: »

The two don't tally. I'd check that you do actually have a Fixed Rate now. It may be possible that you were looking at a Fixed Rate before you applied but after the application has been submitted you've been given a Base Rate Tracker.

Thanks for the advice Tiddler and Ian.

I am assuming the statement aboves relates to the mortgage transferring to the standard variable rate after the initial five-year fixed rate ends? I have been offered a five-year fixed rate deal.

The Halifax did reduce my rate a couple weeks ago so I'm hoping they can do it again. The unstable mortgage market is to blame.

Ian_Griffiths_Halifax

If there is a better rate available now, then you just need to ask for it. It won't be automatically offered to you.

There isn't usually any charge for taking the better deal with the Halifax.

GoldenEye

Ian_Griffiths_Halifax wrote: »

If there is a better rate available now, then you just need to ask for it. It won't be automatically offered to you.

There isn't usually any charge for taking the better deal with the Halifax.

Yes, that is what I did a couple of weeks ago. I asked and it was just a case of re-amending the offer document with one copy being sent to me and the other to my Solicitor. I'm staying with the Halifax and it's just the rate reduction I want. I will contact my Halifax mortgage advisor tomorrow. Thanks again.