halifax SVR

hunt85

Hi all excuse me if this is obvious but i'm new to mortgages! just coming off our first 2 year fixed rate and about to go onto halifax's svr at 3.50%. The best deal we can get (with halifax anyway, haven't looked anywhere else yet as we are 90% LTV and a concrete built flat so most places won't give us a mortgage let alone be able to as a remortgage with 90% LTV!) I just wondered should the base rate increase what kind of notice do halifax have to give us - if any - that they are increasing the SVR? we are deciding whether to risk staying on the SVR as long as we can or going into a fixed rate now but the next best fixed deal is 4.50% with a £999 fee? also is the bank of england annouced a rise would we be able to quickly phone up halifax that day and go into a fixed rate deal before they increased them if it was going to be more beneficial? not sure what to do for the best!

John424

Hi,

I think the general consensus amongst most economists is that the base rate is not going to move for a couple of years so you could stay happily on 3.5% like me for a while if it suits. Base rates do not drive fixed rates so the connection between the base rate and fixed rates mortgages is tenuous to stay the least, I suspect there might be a very loose correlation, any additional thoughts out there? Even if they were connected, you could not beat the market by ringing up halifax on the day, the markets move almost instantaneously on new news. Halifax deals are not very competitive at the moment to say the least. Another 2 year deal at 4.5% with a fee for a period when base rates aren't expected to move, and hence SVRs move accordingly, does not seem a good deal to me at all. Depends how much you crave/need the fix, excuse the pun. I am on Halifax 3.5% SVR but moving to NR for a 3 year fix at 3.2% but then my LTV is slightly lower than yours.

Radionotme

Agreed, fixed rates are more closely tied to the inter-bank market, the LIBOR rate, which is measured daily. Any change by the BoE would likely be preceded by expectations, and an increasing of the LIBOR rate in advance. Besides, if the coming down is any guide, then the BoE will be taking a very cautious approach and raising rates a quarter point at a time, so even to get in ahead of them wouldn't actually save you that much!

Wh05apk

At 90% LTV, I would say stick with Halifax on their SVR, and use the money you are now saving to over pay, so that hopefully in a few years time your LTV will be low enough that you may then be able to remortgage elsewhere, as you have found 90% deals tend to be very expensive, so stick with the relatively low SVR.