Fixed Rate Mortgage Collar

mvodden

I have a fixed rate mortgage that ends this year and ive just found out that my mortage company (Halifax) last year added a collar of 3.5% to my mortage. I was expecting to go onto their SVR which was set at 2% above the base rate. Is there anyway I can challenge this as I didnt agree to this almost 5 years ago when I took my mortgage out with them? - thanks.

hillcats

What does it state in your key facts document?

opinions4u

No. You're stuck with it.

I think they will have to give you 90 days notice of the change though, during which you will be able to leave your fixed rate without paying the ERC.

I'd give them a ring for clarity on that.

[Deleted User]

As SVR's go though, this is still one of the lower rates out there. Skipton borrowers would be envious of the rate that you will be moving on to.

beecher2

My Halifax documents have never said anything about their SVR being set at 2% over base rates - are you sure it mentions this in your key facts?

mvodden

right,

my key facts state,

there is a limit of the SVR at 2% above BoE repo rate. however this can change. But they will inform customers on a SVR, discounted or added rate so they can pay off the mortgage without fees. They havnt informed me of this until i called them! Thoes customers who pay fixed interest (thats me) cannot repay the loan without paying the early repayment charges.

thoughts please.