Halifax Standard Variable problem

beecher2

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.

It doesn't imply that at all - it states what the variable rate was at that time. The contract is in no way unclear as it does not state that it tracks the base rate.

felixrv

Then How did the standard variable rate arrive at 7%

GMS

felixrv wrote: »

Then How did the standard variable rate arrive at 7%

It can 'arrive' at any rate they choose as it is a 'Variable Rate'. It will vary according to the lender's discretion.

A Tracker rate will vary according to the rate it tracks, whether BBR or LIBOR.

If the loan document states 'will revert to Standard Variable Rate currently 7%, 2% above BBR' then this would have been correct on that day (assuming BBR of 5%)

The word 'currently' does not imply anything other than what it would have been at the time of offer.

SVR does not have to have to be justified by another rate. It is what it is.

catieeb06

It sounds like you moved from what was the CAT standard to the SVR.

Halifax have admitted that it was naughty of them to move people onto the SVR from CAT and refunded people the interest that they paid from when they went onto CAT up until now.

At the end of the day, Halifax are going to keep you on SVR so the best you can do is to call them up and say you were not aware it went from BOE+2% to BOE+3%.

felixrv

Because your saying standard variable is discretionary. Are you telling me if they demanded 500%,(that is okay)?

GMS

felixrv wrote: »

Because your saying standard variable is discretionary. Are you telling me if they demanded 500%,(that is okay)?

SVR is chosen by the lender. In theory they could do 500% but not going to happen.

felixrv

How do you know. You seem to be a very trusting person. What would happen if they did, I couldn't do anything as it is 'discretionary'

GMS

Trusting has nothing to do with it.

If you are on SVR you have no tie in so would move elsewhere. why would a lender want to force people away?

Some of my own mortgage is on SVR of 4.24%. Other half is on a tracker of BBR + 1.5% having finished its fixed rate period.

One half WILL move with BBR changes, the SVR element is in the hands of the lender.

If you are concerned with your SVR and think it may go to 500% then look to remortgage.

Get yourself in to a fixed rate to ensure no rises. Also means no falls but not likely to be any for the forseeable in my personal opinion.

felixrv

I don't want the hassle of going elsewhere. 'Why would a lender want to force you away'. But why not? They could, so it does become a question of trust.

GMS

felixrv wrote: »

I don't want the hassle of going elsewhere. 'Why would a lender want to force you away'. But why not? They could, so it does become a question of trust.

They could do a lot of things they wont do. Their business is to lend. They would be foolish to 'make' you leave. If they cannot offer attractive rates customers will vote with their feet.

Unless you took a fixed rate for the duration of the mortgage there would be a point when rates would be dictated by monetary policy or lender discretion.