halifax fix coming to and end

keyboard

Hi all

Just wondered if anyone else is the same boat as me. I'm with Halifax and my deal ends this month and i have decided to stick with their SVR and continue to pay the difference between the repayments on the svr rate and what i was paying whilst in the deal. In other words overpaying.I have set up a standing order to do this. My current deal is 5.34%, my own thinking is the BOE will have to move up to 2% before i need to lock myself in and i can't see that happening anytime soon. Halifax appears to set its SVR 3% above the BOE rate.

Peelerfart

Well done - you're going to become a MFW if you carry on like this.
Be warned though - it's addictive.

dimbo61

Have the Halifax offered you any good long term fixed deals ?
A few people with Nationwide have been offered 5 year deals at 4.39% with no fees and 4.79% over 10 years.
Just wait and see and overpay as much as you can afford.

Magicboo

I'm in exactly the same position, deal ended in June and now I am going to the SVR until further notice. Although I am going to keep a very close eye on mortgage rates etc, I'm worried the decent deals may suddenly disappear...

Judith_W

Be careful though, as soon as the BoE starts going up again, all the good deals will dissappear. Make sure you're on the ball as you don't want to find that when the SVR is finally uncompetitive you cannot get a better fix because they have all gone.

keyboard

hi all

Halifax have not offered me any deals, other then what is available on their website to customers. Naturally will have to keep an eye on the SVR every month, but according to my calculations if the Halifax SVR is consistently 3 points above the BOE, then i can afford the BOE rate to go up to 2% before i need to consider locking myself in. In my view if the BOE rates do go up, it will happen over a steady period of time and will go up slowly, the ecomomy is still in bad shape, banks or still not lending enough and any sharp rises will not help build confidence. Good to know that some of you are doing the same as me in moving on to the SVR.

Thanks and good luck to you all in reducing your mortgage.

Lynn11

We are the same, fixed deal ended 31 May and we are on the SVR with nationwide. Hopefully this will be ok for a few more months and then october/November time we can fixed a reasonable deal. Our financial advisor has said that this is the better deal at the moment and he does not see the interest rates rising until nearer the end of the year - but its a waiting game.

Catanddogs

I can't believe we are fixed at 6% for another 2 years. Any thoughts on interest rates then anyone?

StuartGMC

keyboard wrote: »

In my view if the BOE rates do go up, it will happen over a steady period of time and will go up slowly, the ecomomy is still in bad shape, banks or still not lending enough and any sharp rises will not help build confidence.

Remember, the BOE has a mandate to maintain inflation at 2%, so if inflation rapidly rises so will interest rates; remember how quickly they came down and look back at the historic data you can get from the BOE website on historic interest rates. In essence, watch the information on inflation as this will be your signal to get your fixed deal information and offer quickly, don't wait on watching the interest rates themselves. A lot of the concerns in the business news relate to possible inflation but, of course, we are all in the same boat when trying to predict when the change will occur. In your position, I would take a view on a trigger point for interest rates such that you will opt in (just like a stop-loss position for equities) and then fix.

Regarding baserates etc in future, certainly I think there have been some pundits predicting 5% BOE baserate by 2012, but of course your mortgage rate then could be 8% just as we had in the late 1990s.

Whatever your personal view, overpaying now will be very beneficial. Hope you enjoy joining the rest of us in that journey.

keyboard

Hi StuartGMC

Thanks for the information. I know about the PDF on the BOE website that gives you a history of interest rates, is there another one for Inflation ?

Cheers

StuartGMC

Keyboard
It was the interest rate I was referring to; but, I have a vague recollection of seeing inflation rates and I think it may have been on the NS&I site related to the index-linked certificates? Do let us know if you find one.