Wrong information from Halifax - Please help!

Catanddogs

last week i rang the bank and asked them that i wanted to reduce the term to 12 years instead of 21. Our fixed rate is due to end August 2011.

I received a letter today stating the following:

I refer to your recent instruction to reduce term..........

New monthly payment ........

Your account is on the following products:-

Date of Effect Product Code Product type Interest rate

1st July 2009 FRD XXX Fixed 6.5%
1st July 2009 HVR XXX Halifax SVR 3.5%
1st August 2011 HVR XXX Halifax SVR 3.5%


this is really confusing.... does anyone think i could use this to my advantage??????

opinions4u

It means you have an amount fixed at 6.5% (anything over that amount is on the 3.5% SVR).

From 1st Aug 2011 you'll be on their SVR (currently 3.5%, but it probably won't be by then!).

Catanddogs

opinions4u wrote: »

It means you have an amount fixed at 6.5% (anything over that amount is on the 3.5% SVR).

From 1st Aug 2011 you'll be on their SVR (currently 3.5%, but it probably won't be by then!).

hi, thanks for your response

We have one amount only yes at 6.5% no other amounts so why is the 3.5% mentioned from July 09. Maybe it is just me that doesn't understand?

opinions4u

Catanddogs wrote: »

hi, thanks for your response

We have one amount only yes at 6.5% no other amounts so why is the 3.5% mentioned from July 09. Maybe it is just me that doesn't understand?

There are circumstances where your debt could be higher than the fixed product covers. The 3.5% rate refers to those circumstances (e.g. arrears, payment holidays, insurance premiums charged to the mortgage etc). They may not currently apply to you personally though.

beecher

Halifax always do that - if you look at your annual statement, or even your original deal it'll have the same information. Mine's the same - says 'your mortgage will be on the following rates and mentions fixed and svr, but my payments are at the fixed rate.