Two year fixed isn't 24 months?

Pring

Hey folks,

I took out a two year fixed mortgage with the Halifax in July 2006. First payment being 27th of July 2006. I just checked and the end date for my fix is apparently the 30th of SEPTEMBER meaning an two months to pay at that fixed rate?

Little bit confused as to why this is, I asked a teller at the bank and they said there's a "joining period" but didn't explain well what this actually was.

Can anyone advise? I'm a bit miffed as I was hoping to get out of my fixed in July, not end of September! Surely selling something as "two year fixed" when it's not two years is misselling?

opinions4u

They will have sold you a product that expires at a fixed date, approximately 2 years from application. Sometimes a bit more than 2 years, sometimes a bit less.

Check your mortgage offer and it will confirm that they gave you that clarity.

Their rates are still clearly marketed this way.

http://www.halifax.co.uk/mortgages/ftbchoices.asp

It's not mis-selling on their part. It's failure to read, listen and understand on your part.

TEDDYRUKSPIN

KFI quote will state a date of expiry such as the above, eg. 31st September 2011.

Unfortunately, a 2 years fixed starts at the date the quote was taking and not when the mortgage has moved over. To be honest I do believe this is misleading and in the current market this should be changed.

_Andy_

There is no mis-selling. The end date was clearly specified on the offer that you agreed to.

Waldir

I confirm that they are not trying to cheat on this one...
A few years ago my 2 years mortgage also lasted 2 years + 2 months, even though the rates had been going up (and I was therefore happy to be on my low fixed rate for 2 extra months).

dunstonh

When the lenders issue a tranche, its for a period of time with a fixed expiry date. You may find that by the time you buy the house and move in, you have actually lost a chunk of the fixed term period. That is why 2 year fixed rates are often a waste of money for new buyers or movers.