Are payments always fixed?

monstermuncher

I was on my credit file looking at details of old agreements (bored and curious) and found one that confused me.

It was a secured loan with Halifax (who also did our mortgage) at £105pm over 120 months. I thought it seemed low because I thought the loan was for £10,000. I rang, and it was actually £10,199 (they'd included the arrangement fee, I presume) which seems like an extrordinarily low interest rate!

Does that sound about right? It's on the credit file as a second mortgage, could that be why it seems so low?

Tixy

About 5% APR - for a secured loan / second mortgage with your main lender that doesn't sound exceptionally low - but its a decent rate certainly. though obviously it depends on when it was taken out or on when the £105pm related to.
The loan could well have been on a variable rate and if the £105 was fairly recent when the base rate was very low then it would seem about right.

opinions4u

Around 2003 they aligned their Secured Loan rate with the standard variable mortgage rate.

Whether or not they continued with this policy (which wasn't contractual) after the Credit Crunch mullered them I don't know.

But Halifax Secured Personal Loans were always a variable rate of interest and payments would vary as rates changed.

monstermuncher

Thanks. It wasn't that recent, it was about 7 or 8 years ago now.

I love your signature by the way!

edit: I meant Tixy's signature, otherwise that makes me look weird.