Standard Variable Rate - will fixed rate automatically revert to

jicms

Can anyone confirm whether my Halifax 6% fixed rate mortgage which is ending in June automatically revert to their 4.5% standard variable rate. I'm a bit worried they can say I'm not eligible if I no longer have 10% equity in the property. Or maybe I'm worrying unecessarily cos they won't be revaluing the property anyway? I'm hoping I can stay on the variable rate until prices recover enough to reinstate my equity.

beecher

Yes, it'll automatically revert to the SVR which may or may not be at 4.5% by June. I think their deals are for up to 95% though - I'd be concerned if I was you that prices will take a long long time to recover and the SVR will probably head upwards before then.

pwllbwdr

Could you clarify beecher please - when you say SVR levels will be rising "before then" do you mean before house prices recover or before June. I would agree with the former but the latter is unlikely I suspect.

beecher

pwllbwdr wrote: »

Could you clarify beecher please - when you say SVR levels will be rising "before then" do you mean before house prices recover or before June. I would agree with the former but the latter is unlikely I suspect.

before house prices increase. I don't think SVR will increase until late this year, or early 2010, though who knows for sure. I'd be concerned that the OP's equity might not be back to what he hopes for in a long time.

hearts

beecher wrote: »

before house prices increase. I don't think SVR will increase until late this year, or early 2010, though who knows for sure. I'd be concerned that the OP's equity might not be back to what he hopes for in a long time.

Rates could stay very low for a number of years.