Halifax Standard Variable problem

beecher2

felixrv wrote: »

so why aren't they leaving because they shoved up the standard variable rate to 3.5% when it should be 2.5%

Probably because they are happy with the SVR as it is and recognise that it is one of the lower SVRs about. They haven't 'shoved up' the SVR - it steadily decreased from 7% to 3.5%.

As to your other point, I believe that the majority of people understand what 'variable' means.

felixrv

Are you a mortage broker or a customer?

beecher2

felixrv wrote: »

Are you a mortage broker or a customer?

Ex customer - mortgage free but held a mortgage with BoS/Halifax for 14 years. Learned the meaning of 'variable' before that though.

felixrv

and in that time when the interest rate was higher , did they ever increase there standard variable rate from 2 % to 3% above the base rate.Or has the only time they have ever done it is during the financial crash.

dkmax_2

felixrv wrote: »

It might be obvious for mortgage brokers(which the majority of you are) but it is not obvious for customers.

I know I am flogging a dead horse here but you have to try very hard to avoid information on SVRs. They are described on lender's websites and documentation, consumer sites and newspapers.

http://www.independent.co.uk/money/mortgages/five-questions-to-ask-about-standard-variable-rates-1890758.html

It is a term as fundamental to understanding real mortgages as capital, interest, base-rate etc. are.

(Mortgage customer)

fleitner

Why should the standard variable rate be 2% or 3% or whatever above the base rate? It never followed the base rate accurately, so why should it start now?

And for the record before you ask: I have a mortgage with Halifax, I went direct without broker and I understood from the beginning that, once my fixed rate is over, I have to pay whatever they charge me or leave.

beecher2

felixrv wrote: »

and in that time when the interest rate was higher , did they ever increase there standard variable rate from 2 % to 3% above the base rate.Or has the only time they have ever done it is during the financial crash.

I've no idea - never been on SVR for any length of time. I think the gap was lower than 2% in the 1990s though. They didn't increase their SVR over the past few years though - they just didn't pass on all of the base rate cuts. Few lenders did.

felixrv

Thanks dxmax, the only bit of decent advice I got on here. That article should of been published before the financial crash.

payless

To the OP - yes at the time of talking your deal, the Halifax made a point in saying their SVR was BofE base plus 2% ( ie a tracker) ... but they gave themselves the get out of saying with 30 days notice they could alter the tracking difference on the SVR - which they did ( raise it that is, not sure if you got the notification) . All of this would be in offer and/or pre-sale illustration ( key facts)

Its a half way house... the likes of C&G and nationwide and even some HBOS brands have honoured their base+ 2% svr rate to existing customers , ( guess wording was tighter in favour of customer ) but others did not and moved it much higher that Halifax's.

InMyDreams

felixrv wrote: »

I am sure you will agree it is not in the interest of the broker to highlight areas of the contract which could potentially change my mind especially when it is not so obvious.

Why not? Or are you assuming that a broker is just going to advise you to buy the mortgage based solely on which will pay him the most commission and so not want to put you off? If you are worried about this then go to one that charges a fee and considers the whole market rather than a fee-free one.

felixrv wrote: »

That argument is not valid as it is really halifax offering the mortage and why would the mortgage broker suspect this. They are not solicitors.

I don't understand this. Are you suggesting that a mortgage broker does not know that SVR doesn't necessarily move with the BoE base rate? I am not a mortgage broker, but even I know that. I think because when I took out my first mortgage, my mortgage broker explained to me the difference between BoE base rate and SVR. Some deals tracked one and some tracked the other so even if they were the same at the start, there's no guarantee they will be the same at the end because the SVR doesn't necessarily track anything. When the BoE moves the base rate, the banks all tend to move their SVRs but only to stay competitive with each other. If they jumped it up to 500% they wouldn't keep very many customers!