HALIFAX fixed rate coming to an end in two weeks...do I stay on the SVR???

tashlovestosave

Hi all

Back in 2008 (well, 2006 originally) we fixed with the Halifax for two years at about 6% (i can't remember the actual rate.....i know that is bad!) Well, we have paid off a total of £400 of our £160000 mortgage in that four years and our monthly payment has been £1061! So, now that we are coming to an end with our fixed rate, i've been told that we will automatically move to the SVR if we don't take a new deal.

I've been on maternity leave for 11 months and in order to cope, we have used our savings and my credit card (the cars both needed major work......at christmas!). We were thinking that if we just go with the SVR we can use the leftover difference from what we were paying towards the credit card to get it clear before the credit card initial 0% rate period ends.

Do you think that this is risky and we could end up paying alot more than if we move back into another fixed rate deal???

tashlovestosave

Any advice from anyone???????????????????????;)

ViolaLass

Can't advise but are you sure you've paid that little off? In the first month alone, £261 should have come off the capital.

JA1000

I take it you are on interest only. You haven't disclosed what your SVR would be, I would expect this to be significantly lower that the current 6%, you should see a huge fall in your monthly outgoings. Use this to pay of the other debt.

Xbigman

You need to ask;

What will the SVR be?
What rate can I get if I fix/track?
What fee do I pay for the new fix/tracker deal?

It might be that you want to fix at a slightly higher rate than the SVR for future security but its purely a personal choice.

If you have other debts and have paid very little off it is paramount that you use any savings to clear your other debts and then pay something off your mortgage. DON'T just spend it.
Regards




X

getmore4less

Looks like halifax SVR is 3.5%

You paid a lot more(mutliple £k) by fixing last time so who kows.

I would clear the other debts, how long will it take at 3.5% mortgage rate.


Check the options
http://www.halifax.co.uk/mortgages/halifaxmortgagecustomer.asp

you could fix and still have some left to hit the debts.

tashlovestosave

Hi again

We were interest only from 2006 until 2008 where we moved to Repayment. In 2007 we had to take a 6 month payment holiday. So, our actual mortgage balance as of today is £159100......this hopefully explains why the payments haven't made much of a dent.

The SVR is 3.5%

After a quick look on a mortgage compare site, most deals are coming in with a £1000 fee.....and at around 4.29% tracker deals.

Our Loan was a 12 month loan and finishes in Jan 2011.....my CC is the one i really want to hammer down. I want it paid off by August so that its done and dusted.

I also have two overdrafts with Halifax from when we were with them (only the child tax credit goes in there now). Seeing as the halifax now charge £1 per day for my OD......I am paying around £62 a month just for those.....

My thinking was if we went on the SVR i could use the extra to pay those two off then the CC.......i'm just a bit twitchy about not having the security of the fixed rate......also, last time.....we fixed and a month later everything went down by alot. I just don't know what to do for the best!!!!

getmore4less

£2300 OD £62pm, 2.7%pm

annual 32% or 37% compouned


http://www.makesenseofcards.co.uk/mon2yr.html

moominyak

we fixed and a month later everything went down by alot. I just don't know what to do for the best!!!!

I know the feeling... very annoying, but my crystal ball was on the blink at the time

Couldn't you go onto the SVR for now, and then when the base rate starts going up, shop around for a fixed deal? At least you'd get a bit of time to work at clearing the c/cards and od before you commit yourself to another tie-in.