MSE News: 40,000 Halifax mortgage holders at risk of payment hike

Radionotme

Lets hope they can also raise rates for savers as well.

:rotfl:
That was meant to be a joke, wasn't it?

brit1234

Radionotme wrote: »

:rotfl:
That was meant to be a joke, wasn't it?

No, there are more savers than borrowers. It is savers who are paying the costs of these low interest rates and suffering.

With the cost of lending going up it is only right that savers get rewarded for contributing the money at a fair cost.

Radionotme

It may be 'only right' and fair, but it's not going to increase profits at the bank, so I can't see it happening unfortunately. Not until the BoE base rate goes up.

brit1234

Radionotme wrote: »

It may be 'only right' and fair, but it's not going to increase profits at the bank, so I can't see it happening unfortunately. Not until the BoE base rate goes up.

The best saving accounts have been steadily increasing their interest rates over the last couple of years. It's very common for accounts to have over 6 times BOE rate and it is going up, sadly not in line with inflation though. BOE base rate is becoming more meaningless day after day.

Check out the chart below for LIBOR rates:

http://www.bankrate.com/rates/interest-rates/libor.aspx

These too are being artificially kept low by printing presses.

skinnyman9000

My parents received a letter last week stating that from 1st March their interest rate would be 3.75% + base rate. Firstly, this is a ridiculous interest rate for a mortgage lower than 50% LTV, and secondly they gave around 7-8 days notice of this change.

Safe to say they're jumping ship rather quickly!

james3333

skinnyman9000 wrote: »

My parents received a letter last week stating that from 1st March their interest rate would be 3.75% + base rate. Firstly, this is a ridiculous interest rate for a mortgage lower than 50% LTV, and secondly they gave around 7-8 days notice of this change.

Safe to say they're jumping ship rather quickly!

is EVERYONE that is on the SVR with halifax going to be paying 3.75% from 1st match or just SOME people?

curlygirl1971

james3333 wrote: »

is EVERYONE that is on the SVR with halifax going to be paying 3.75% from 1st match or just SOME people?

I'm very interested in the answer to this too!

Incidentally it's not 3.75% but 3.75% PLUS the current BOE Base Rate

I'm not sure if I'm a bit dim (don't say it) or the article is poorly written or the information coming from the Halifax is unclear - but I am confused!

The article says that all they've done so far is given notice that they are increasing the cap (from 3 to 3.75%) for some Mortgage holders on SVR, but not yet applying it.

However Skinnyman says that his parents have been told their rate is increasing already!

My Mortgage T&C's are 2004 2nd Ed, which is the period of time that the article refers to (Mortgages between 2001 and 2007) but I've never added to it.

It will be interesting to see who receives the notification letter and who doesn't and how this may relate to their Mortgage (ie What terms are applicable, have you ever added to it).

According to the article, it's only going to affect (for now?) 40,000 of their customers which as Opinions4u stated - is surely not everyone who is on the SVR and took out a mortgage during that period of time. Remember that early last year they compensated over 300,000 of their Mortgage holders that had 1) taken out a mortgage in the above time period and 2) went onto the SVR during or after January 2009.

Whilst this 300,000 would have included ex-mortgage customers there is a huge variation in target customer base here.

SandC

It says in the article that it affects those who have had additional borrowing where any part of their mortgage is subject to ERCs.

puregeordie

Just to re-cap...If you pardon the pun!

Does sound a we bit confusing doesn't it,

I think its the Cap on the SVR.

The SVR stays the same at 3.5% for me and all that is on it.

It said: “We have written to all affected customers to explain that from March 31 2012, we are amending the cap on the Halifax SVR from 3 per cent above base rate (of 0.5 per cent) to 3.75 per cent above base rate. This change does not affect the amount customers pay, and the SVR remains at 3.5 per cent.

http://www.ft.com/cms/s/0/258c5ca4-645b-11e1-b30e-00144feabdc0.html#axzz1nym2w9nd

I have also just come of the phone from the HALIFAX as I'm on the bog standard SVR and it will NOT affect me as if shouldn't effect anybody else on the SVR with them I guess.

Basically as been said that its capped at 3.75% rather than 3% above the BOE rate so It will not go below this in future.

Cheers.

JimmyTheWig

SandC wrote: »

It says in the article that it affects those who have had additional borrowing where any part of their mortgage is subject to ERCs.

I take this to mean that it affects everyone on their SVR (or it potentially affects them as it's only a risk of payment hike) but there are 40,000 people on SVR who are tied in to Halifax.

Most people on SVR will be past their product end date and so free to remortgage (either with Halifax or elsewhere). But those who have additional borrowing against their property with Halifax (a second mortgage) where their first mortgage has reverted to SVR will be tied in through their second mortgage.

My point (post #2) was that many others will, in effect, be tied in to the Halifax SVR as they will not currently qualify for a new mortgage.

But it's only the 40,000 who are allowed to use this rule change to get out of their early repayment charges by 12th June.


Hold on, they're a bunch of crafty whatsits!!!

They are making the rule change now but not putting their rate up. Presumably not many of the 40,000 will move as the rate is not going up.
What's the betting on them putting up their rate on 13th June, or sometime soon after?
By doing it this way they avoid giving the people tied in an escape route at the time they put the rate up.