Halifax Standard Variable Rate

iaks

Hi,

Has anyone been able to buy themselves out of their 'fixed term' deal with Halifax and transfer to Halifax's Standard Variable Rate?

Just before mortgage rates slumped, I stupidly fixed for 5 years at nearly double what the SVR is currently. I called Halifax (knowing I'd have an early repayment charge) to see if I could terminate the current deal and transfer on to the SVR. I was told I could only go onto SVR when my deal expires (in 2.5 years time), and that I could not end the fixed term and transfer on to it. I could transfer to another one of there Fixed Term deals - but financially, this doesn't make any sense for me to do.

I've no equity in my house, in fact I'm well into negative equity, so no other lenders will touch me.

Does anyone have any hints or tips about how to move off the Fixed Term onto SVR?

Or - does anyone know of any lenders who would take on 'negative equity' properties?

Thanks!

_Andy_

You've already been given the answer by Halifax.

No other lender will look at your case with the negative equity.

I don't think there was anything 'stupid' about taking a 5 year fixed rate - you clearly wanted medium term stability which is what you have (and what you wouldn't have on the SVR).
Concentrate on overpaying as much as you can.

SandC

Nobody could have predicted what the interest rates would be now and have been for some time. Your fixed rate suited you then, your circumstances haven't changed so you should stop yourself from checking what everyone else is paying and what's happening until you approach end of the deal.

Even if you did manage to come out of it and go on SVR, who is to say that Halifax would then let you have a 'deal' in a couple of years time when the rates might be significantly higher?

Agree with the above poster also, if you can, then overpay and then review your situation closer to the release date.

dimbo61

Even at 5% most 5 year fixes are still 4/5% with a good deposit so dont beat yourself up as you did make the right decision in taking a long term fix.
If you can overpay as it saves you over 5% TAX free

iaks

Thanks all. Yes, overpaying is a nice to have - I'm at the top of my budget at the moment, so my thinking was by switching to a lower rate, I could then start to do the over-paying (by keeping my payments the same each month as they are now), or use the money usefully to clear some small credit card debt, or save up for my forth-coming wedding! Ah well - back to the savings!! Thanks again for your help!

Thrugelmir

iaks wrote: »

or use the money usefully to clear some small credit card debt, or save up for my forth-coming wedding!

Prioritise your financial affairs.

Adding to the burden of debt just makes the weight heavier and heavier to carry and service.