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Quick question!

What are the two rates shown on this link?

There is two different amounts, starting one and then one for comparison? Is the starting one the one I go by? And why the different one for comparison? I don't quite get it. :confused:

http://www.halifax.co.uk/mortgages/fixeduntil2016.shtml

Is it just because the rate then, should you not remortgage which I probably would, would raise to 7% after the 10 years. The comparison rate is the average % should you stick with the mortage the entire term?

Cheers

Comments

  • anandp
    anandp Posts: 279 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Correct - the 6.1% is the comparison rate because its the average you'd likely pay if the variable rate stayed the same over the course of the mortgage term.

    Its pretty meaningless, as it will definately change but if you're comparing lots of lenders now, its ok as a no.2 comparison number.

    The fixed term one is the one you should be paying attention to, as you should be looking to move it after the term is over anyway.

    See https://www.ybs.co.uk for good rates too.
    Interested in property investment, web tech, social media, forex, equities. Also a proud father & entrepreneur of sorts.
  • Ian&Kel
    Ian&Kel Posts: 41 Forumite
    Thanks very much!
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