More advice please!

summer1982

We are with Halifax and pay £1088pcm (7.89%) :(

Thankfully this is coming to an end in July, I have an appointment with a broker, but I am wondering if I should just go on their variable rate for 6-12 months - this is assuming it wont increase to 7.89% during that time (is that a big risk?)

I would then continue to pay £1088 to the mortgage (anything over the variable rate I would save) and use the savings to put towards a better deal when we come to re-apply?

I might be way off with my thinking but would really appreciate some advice

grogdog

you will automatically move on to their variable rate which is currently 3.5%

Wh05apk

As grogdog says you will move to 3.5% which will save you a lot, depending on your plans it could still be worth remortgaging depending on your ltv, if you are above 80% which you could be with a rate like that, it may not be!

summer1982

Wh05apk wrote: »

As grogdog says you will move to 3.5% which will save you a lot, depending on your plans it could still be worth remortgaging depending on your ltv, if you are above 80% which you could be with a rate like that, it may not be!

Thank you, the last time I spoke to Halifax my LTV was 99%!!!

So do you think it would be worth staying on variable for some time? How long would it take for them to hike the rates up to 7.89%...anything below this and we are still saving compared to what we are on now.

I think it may be worth saving hard to have £££ to put down when we remortgage?

Wh05apk

summer1982 wrote: »

Thank you, the last time I spoke to Halifax my LTV was 99%!!!

So do you think it would be worth staying on variable for some time? How long would it take for them to hike the rates up to 7.89%...anything below this and we are still saving compared to what we are on now.

I think it may be worth saving hard to have £££ to put down when we remortgage?

I don't think you will have much option, stay on SVR, and keep paying the £1088, hopefully it will be a long time before SVR is upto 7.89%

summer1982

How much notice to banks have to give before putting their interest rates up?

Do they give you enough time to fix a deal?

Thank you

Wh05apk

Generally, once you "think" you need to fix, it will be too late, lenders go to the money markets to buy fixed rates, and these price according to where they feel rates are going over the period, if the markets think for example rates will rise in 6 months time, then that will already be priced in now.

getmore4less

summer1982 wrote: »

How much notice to banks have to give before putting their interest rates up?

Do they give you enough time to fix a deal?

Thank you

The rate you are allready on it will be in your T&C probably 30 days or next months payment

For new borrowing
NONE:
They set the rates when they want, it is posible to be looking at rate and start the process and have it change.


If the last time you spoke to them LTV was 99% its probably got worse.

3.5% and overpaying will reduce the debt and buffer you from future rate rises.