stay on svr or fix

blueberrypie

kazd wrote: »

What is the Halifax base rate. All the advice in the news yesteday was not to fix as the bank of england base rate needs to rise by approx 9 1/4 point rises before you should think of fixing.

Halifax don't have a base rate, as such. They have a Standard Variable Rate (SVR), which is what most mortgages will move onto at the end of their fixed-rate period. At the moment, Halifax's SVR is 3.5%. However this is a *variable* rate, and will almost inevitably rise as the BoE base rate does - but not necessarily by the same amount in the same period. Halifax could, if they wished, increase the SVR at any time, to whatever they chose. They are unlikely to do anything drastic without a substantial BoE base rate rise because that would make them uncompetitive.

Whether a borrower should consider fixing depends on several factors, including what they are paying now and what the best fixed rate available to them is. In the OP's case, the fixed rate they have been offered is 3.99% - only 0.49% higher than the current SVR. If the base rate rises, the SVR will probably rise - but so will the fixed rates on offer.

The choice of fixed rate also depends on a borrower's preferences - many borrowers prefer to know exactly what their mortgage payment will be for the next few years so that they can budget accordingly, and many don't feel they could absorb very much of a rise in rates, and so choose to fix while the fixed rates on offer are low(er than they'll be when the base rate rises).

ripon12

yep thats right 3.5% standard variable rate with halifax is what i am on ( and will be going on when second part ends)

dimbo61

That's a great 5 year fixed rate deal with a very low fee of £99. If you use " whatsthecost " you can work out the cost and reduce the years one at a time to see what you are happy paying each month.

getmore4less

ripon12 wrote: »

ok im currently with halifax i have arranged to get the whole amount (93000) on 3.99% through hsbc with a £99 fee
the fix is for 5 years
follow on rate 3.94 (svr)no tie inns

erc for the 30,000 is 650 but that ends in june and looking to move from halifax begining of july
so in june the whole of my mortgage will be on the same rate if i stay with halifax or move elsewere but not sure wheather i should track or fix

OK that makes more sense now.

SO basicalky it is £99(+ maybe some other bits) and 0.5% for the 5 year fix and posibly a higher follow on.

Its better than the current offering which is
https://mortgages.hsbc.co.uk/product/A004026676004026681004026686-5-year-fixed-special

I think I would take it if you want to go down that route this is probably the best around ATM

Another option might be to go for the low cost tracker
https://mortgages.hsbc.co.uk/product/A001001559001001562001001565-lifetime-tracker-special