Halifax Standard Variable problem

felixrv

Hi,

I was wondering if someone can help me. I took out a 2 year fixed tracker mortgage in august 2008 with Halifax

At thee time the standard variable rate was 2% above the base rate.
The bank of england base rate was 5%. So the overall interest repayment was 7%.

However my tracker mortgage has come to an end and all of a sudden the standard variable base rate is now 3% above the base rate.
The current bank of england base rate is 0.5%, so the overall interest repayment is 3.5%.

I think my interest repayment should be 2.5%.(2+0.5%) Does halifax have the right the right to change the standard variable rate as it says nothing about it in my contract. What can i do?

I can understand them changing the standard variable rate for new customers but I am an existing customer and this feels very sneaky.

eschaton

The clue is there - variable....

Nowhere does it say base rate tracker does it?

felixrv

. It says Halifax standard variable rate.

It also says the tracker base rate is linked to the bank of england base rate.

GMS

Standard Variable is not linked to anything so can be altered as and when the lender chooses. Some lenders have chosen to stay within certain levels of base rate but this is a choice rather than a requirement.

eschaton

felixrv wrote: »

. It says Halifax standard variable rate.

It also says the tracker base rate is linked to the bank of england base rate.

Yep and variable = variable (check dictionary for meaning of variable)

Your tracker rate is ENDING so why bring this into it.

felixrv

I know variable is variable but the variable rate must be based on something.If the interest was to go up they wouldn't just change it it to 3% but they seem to be doing it just because the interest has gone down to 0.5%.
They said they wouldn't invoke there collars but now they are doing a dirty on the standard variable rate.

GMS

If it was based on something it would be a tracker.

SVR can be what the lender chooses it to be. Unless they have agreed otherwise.

felixrv

The standard variable rate was based on somthing, the bank of england base rate because it states in the document that after my trakcer mortgage is up, it will revert to 2% above the base rate(currently 7% on the date ended as it was 5% at the time)

GMS

If it reverts to Base Rate + 2% then it will be 2.5%.

Check the exact wording. If it says revert to SVR then what it was at that time will not count.

felixrv

The exact wording is that 'your loans reverts to Halifax standard variable rate currently 7% after ///(date)'

To me this implies the standard variable rate to be 2% above the base rate. Either that or the contract isn't very clear.

eschaton

felixrv wrote: »

The exact wording is that 'your loans reverts to Halifax standard variable rate currently 7% after ///(date)'

To me this implies the standard variable rate to be 2% above the base rate. Either that or the contract isn't very clear.

I think you are the one that isn't clear. Read it properly and you will have your answer.