2 Year Fixed Deal Ending after 27 months?

bobjimwilly

First time poster, so please be gentle

Myself and my partner are first-time buyers, and secured a 2 year fixed mortgage @ 6.79% with the Halifax back in March 2008.

The advance/product feed/higher lending charge were debited on 31/03/08, and our first payment, made by direct debit, was credited 14/04/08

I was expecting our payments to drop from April 2010 (last tmonth), as it has been 2 years since the mortgage was set up and the current variable rate is much lower (Halifax Variable Rate was 4% as of Feb '10, shown on our last statement.) However the same payment came out of our account?

I duly rang the Halifax and was told our fixed deal does not run out until July 1st 2010? I didn't question the girl on the phone at the time, but I can't figure out why they have decided that is when I will be moved on to the variable rate?

Is a 2 year fixed mortgage not for 2 years?

Has anyone else experienced this and is it normal "procedure"?

_Andy_

Check your KFI / mortgage offer, the date will be in there. Standard not to be 'actually' 2 years but to a specific date.

madeupname1

I agree with Andy. For example, the Post Office is advertising a 2 year fixed rate which ends 30 June 2012. However, if you took it out in April this year (which was when I first noticed it), it would still end in June 2012, 26 months later.

bobjimwilly

Thanks for the info. Have checked mortgage offer and is a bit confusing?

Under "4. Description of this mortgage" it says "6.79% Fixed until 30/06/2010" and "A fixed rate for 2 Years".

But under "6. What you will need to pay each month" it says "24 Payments at a fixed rate of 6.79%".

I'n starting to wonder if the intial mortgage offer should have been brought forward, as we moved in in April, not June. The offer definately states 24 payments at the fixed rate, which which have paid as of March?

Suppose I'll have to ring them again and see what they say.

:huh:

beecher2

It'll also say under 6 'this assumes a start date of...'. Waste of time phoning them -it'll end on 30 June. It would be rare to get a 2 year fix which finished exactly 2 years after you started them as they're done in blocks.

getmore4less

Could be that the rate is fixed till 30/6/10

But any tie in only applies for the first 24 months.

bobjimwilly

I'm hoping the rate is only tied in for 24 months, but knowing the banking system they will be able to focus on the fixed rate date. I'm sure if the current variable rate was higher then 7%, they would have switched to it. :undecided

thanks for all the replies!

beecher2

bobjimwilly wrote: »

I'm hoping the rate is only tied in for 24 months, but knowing the banking system they will be able to focus on the fixed rate date. I'm sure if the current variable rate was higher then 7%, they would have switched to it. :undecided

thanks for all the replies!

I don't agree - it is nothing to do with the 'banking system' and everything to do with the date which quoted. Halifax have always worked this way, regardless of the SVR (which incidentally is 3.5% rather than 4%)

opinions4u

bobjimwilly wrote: »

I'm hoping the rate is only tied in for 24 months, but knowing the banking system they will be able to focus on the fixed rate date. I'm sure if the current variable rate was higher then 7%, they would have switched to it.

I'm sorry, but this is total and utter nonsense. You are stating a point of view that they have set out to screw you when they have merely complied with the T&Cs of what you signed up for.

They offered you a fixed rate with a clearly dated expiry. You took it.

If their SVR was now 100% they wouldn't be pushing you on to that until 1st July 2010.

Just be honest - you didn't realise what the (not so) small print said about your mortgage and as such you're a bit peeved that you'll be paying your current monthly payment for slightly longer than expected.

The mortgage will do exactly what they told you it would do - go on to the SVR on 1st July.

bobjimwilly

ok ok no need to get all wound up about a light hearted comment?
I'm not really peeved to be honest, had already accepted what the woman said on the phone and had read the key facts actually, just not in so much detail?

I think some users on here need to chill out a bit. Thanks to those who helped initially anyway.

Oh, by the way, regarding this comment:

The mortgage will do exactly what they told you it would do - go on to the SVR on 1st July.

The mortgage also told me they would only take 24 payments at the fixed rate before switching to the SVR! How was I to know that the date for the end of the fixed rate period is, in effect, prioritised over the number of payments at the fixed rate? Hence why I started the thread in the first place!

Pincher

You are assuming Halifax hires decent lawyers who work diligently for every product and never make mistakes. They cut and paste and forget to check like everybody else.