HALIFAX MORTGAGE...why would i NOT fix...

james3333

hi all,
i have been enjoying the SVR with halifax now for over a year, but now the SVR is going up to 4%.
my house is worth 120k and i have 77k left to pay.

from looking at their website i think i can get a 2 year fixed for 4%....is there any reason i should not fix, i cant see the SVR going back down anytime soon.
any help apppreciated

Dave_Ham

Unless anything has changed in your personal circumstances, you would get a better fixed rate than that by switching lenders entirely....

Aside from that, Halifax have priced their fixed rates to entice you to fix when you would not have considered it 3 weeks ago so mission acheived.

Aside from that, a mortgage book that has a large % fixed is more desirable to sell on - maybe Halifax is making themselves a more marketable aquisition or maybe they are just being greedy or commerically astute whichever fence you sit on..

james3333

thanks, what sort of deal do you think i could get, not really into switching unless its REALLY going to save me a lot

DominicJ_2

I just dont get the point of two year fixes.
You can fix for 5 years with YBS for about what you are paying now.

james3333

DominicJ wrote: »

I just dont get the point of two year fixes.
You can fix for 5 years with YBS for about what you are paying now.

with a FEE?

opinions4u

Dave_Ham wrote: »

Aside from that, a mortgage book that has a large % fixed is more desirable to sell on

A variable rate mortgage book with no rate variation restrictions is a much more enticing proposition than a fixed rate mortgage book.

I'd be amazed if LBG are looking to sell any Halifax branded mortgages.

More likely they want borrowers to take their business elsewhere. A stated aim of the company is to remove all reliance on wholesale funds over the next few years.

Dave_Ham

I may rename my user name as the 5 year fix police.

5 years is such an incredibly long time to know what you future looks like, partners, marriage, divorce, death, separation, work changes, inheritances, family births, family members moving in, opportunities to fix for 5 years on the face of it appears a good idea, but can prove to be the opposite.

Search early redemption charges on this forum alone and see how many people are trying to get out of them or mitigate them.

There was a guy on a post a few days ago that tied into a 2 year deal in December he wanted out of - his reasons fair enough but it happens time and time again.

Off soapbox now - depending upon your income, credit rating etc. you could sensibly achieve a rate that starts with a 2. May not save you a fortune, but if it took 18 months off of your mortgage term = good deal..

You are wise to assess the fees involved!

All the best..

james3333

Dave_Ham wrote: »

I may rename my user name as the 5 year fix police.

5 years is such an incredibly long time to know what you future looks like, partners, marriage, divorce, death, separation, work changes, inheritances, family births, family members moving in, opportunities to fix for 5 years on the face of it appears a good idea, but can prove to be the opposite.

Search early redemption charges on this forum alone and see how many people are trying to get out of them or mitigate them.

There was a guy on a post a few days ago that tied into a 2 year deal in December he wanted out of - his reasons fair enough but it happens time and time again.

Off soapbox now - depending upon your income, credit rating etc. you could sensibly achieve a rate that starts with a 2. May not save you a fortune, but if it took 18 months off of your mortgage term = good deal..

You are wise to assess the fees involved!

All the best..

2% really!!!!!????
blimey, maybe i should look harder, all i have seen is 3.5%-4.5% or higher unless you pay massive fee's......i thought i had been on a brilliant deal with the SVR at 3.5% but if i can get onto a 2+% i will be buzzing!:money:

Dave_Ham

I stand corrected on the mortgage book, I assumed common sense would like confirmed market share %. I am aware the SVR bank used to be super profitable for the bank, but again assumed this had changed when most come off of good rate trackers - off thread apologies but of interest...

Peelerfart

However to take an alternative stance to Dave Ham (aka 5 year fix police).

Taking a shorter fix would involve paying fees again,once your shorter deal has expired.
This could add a considerable amount to your mortgage costs.

He is dead right in what he says though,5 years is a long time and people's circumstances change and they often post on here saying they want out and want to know about ERC's.

It is highly unlikely however,that you would ever see a post on here that says how happy people are with a five year fix because people simply would not post that, all you would read about is the unhappy ones.

Would I go for a 5 years fix? yes, they ain't going to be cheaper than they are now (probably).
Have I got a year fix? - hell no I'm a BofE tracker guy.

jonnyfgood

I'm in a similar boat to you James, been on the Halifax SVR for over a year now but after the recent announcement, now considering a switch.

Like you, am a bit reticent about changing mortgage provider due to considerations like valuations, legal fees, income proof, deed transference, hidden fees for switching provider, etc...

Therefore I've been looking at what Halifax have to offer. All the experts suggest no base rate rise for at least two years so the tracker looks the best option, however the product fee is a min of 1k and the rate is a fraction below 3% for two years.

Fixed deals seem to be better, and as my LTV is around 30%, I can get 3.49% for two years with no fee. As least It means my monthly payment won't rise on 1st May.

The man from Halifax is ringing me tonight!