changing a mortgage between final offer and completion

The_Palmist

Hi Folks,

I applied for a Halifax Mortgage few weeks ago and am on the final offer stage. I have noticed some new deals on Halifax's website and wondering if they are any better. I would welcome any feedback.

LTV 73%

My current product
2.84 % 2 Yr tracker [BOE+2.34] £995

New Products I am interested in

2.89 fixed for 2 yrs £1495 [£150 cashback]
2.34 2 yr tracker [BOE+1.84] £1495 [£150 cashback]
2.79 2 yr tracker [BOE+2.29] £995 [£150 cashback]


Even a small rise on BOE will make the 2 YR fix better than my current deal, so I am very much inclined towards the 2 yr fixed at 2.89 deal.

The_Palmist

There is a 10% limit on early repayment on my current deal. I don't intend to repay more anyway.

dimbo61

What will you do if interest rates are 6% in 2 years time ?
Why not look at longer fixed rate deals say 5 years if you need long term security and intend to stay long term

The_Palmist

dimbo...any feedback on the deals I have mentioned ?

If the interest rises then I will be paying more every month like others I guess. I am not looking for a 5 year long security. I wan't to make the most of the current low rates while I can. If rates go up, I will just have to pay more.

dimbo61

Without knowing the size of your mortgage and lots of other information how can anyone give ADVICE ( which is not allowed under forum rules only opinions/views)
As you point out a 0.5% rise in the BOE rate would make the fix a better deal and that is likely over the next 2 years but thats a big fee for only a 2 year deal. ( what does the mortgage revert to at the end of the fix).
What are you on at the moment! Or is this a new mortgage

The_Palmist

Hope this helps understand the situation/dilemma.

House Buying Price £122K Mortgage £92K

I am FTB. The mortgage I got from Halifax is 2.84 % 2 Yr tracker [BOE+2.34] £995 It is not on offer at the moment. I have a few weeks while solicitors do their checks etc.

Are any of these actually worth the hassle of changing my mortgage

2.89 fixed for 2 yrs £1495 [£150 cashback]
2.34 2 yr tracker [BOE+1.84] £1495 [£150 cashback]
2.79 2 yr tracker [BOE+2.29] £995 [£150 cashback]

dimbo61

What you have at the moment is a mortgage offer! from the Halifax as you have not drawn the money to buy the property
You have a 25% deposit and money for fees? so well done on that.
But you are paying £995 for a tracker or £1495 for a 2 year fix ( thats £62 a month in fees)
Rates have never been this low and unless you have plans to move in 2/3 years and like paying remortgage fees every 2 years please think long term
With a 25% deposit and £1000 to pay in fees you can get a 5 year fix for less than 4% YBS, Nationwide and others

The_Palmist

Correct about deposit and final offer.

I could not agree more with your suggestions about long term. My initial choice was a fee free life time tracker at 2.99 [2.49+BOE] from HSBC, no ERC either. Unfortunately I had to opt out due to restrictions on my non-EU passport. I did not considered this before applying to HSBC and getting a MIP.

This left me with a limited choice of lenders to begin with, fortunately Halifax were there to save the day [happy to bite the bullet really].

dimbo61

So if you want to stay with the halifax offers and dont want a 3/4 year fix then the 2 year fix would cost about £17 a month more ( including the extra £350)
If the BOE rate went up 0.5% then you would pay about £21 a month more than the fix
Your call

mustang1

Just to add that you might need to factor in any fee you might be charged by Halifax if you change product. I've just done the same with Woolwich and had to pay £150 change of product fee. It was worth it to save £50 a month for 2 years but is something you'll need to factor in when working out if it's worth switching to a different product.

The_Palmist

Well turns out that the 2.8 fixed deal at £1495 is only for amounts more than 250K so I don't qualify for it anyway. It was still worth calling as my current deal 2.84% has changed to 2.79%. So Halifax will change the details at no extra cost and also give me the £150 cash back.