Can I move early onto Halifax SVR?

Barebear

Hi

I have seven months to wait until my fixed rate with Halifax ends and I have a ERC of around £700 at the moment.

Would Halifax let me pay the ERC and move onto their SVR, saving me around £200 per month?

:money:

motch

I'd doubt it as they'd lose £700 to your pocket. Worth a try though, give em a ring.

blacksta

interesting concept - i doubt they will allow. I suspect the bank will be losing the potential earnings

opinions4u

They don't allow you to move on to SVR.

They may allow you to move on to one of ther other deals if you pay the ERC. But remortgaging may be a better option.

blacksta

opinions4u wrote: »

They don't allow you to move on to SVR.

They may allow you to move on to one of ther other deals if you pay the ERC. But remortgaging may be a better option.

The poster could just wait out the seven months - Who knows anyway - Halifax could increase their svr again :D

kingstreet

Only £700 ERC, but a saving of £200 per month on the rate?

That sounds odd.

A final year ERC of 1% would mean a mortgage of £70k, but there's no way you're going to save £200 per month on that size mortgage...

Barebear

kingstreet wrote: »

Only £700 ERC, but a saving of £200 per month on the rate?

That sounds odd.

A final year ERC of 1% would mean a mortgage of £70k, but there's no way you're going to save £200 per month on that size mortgage...

Thanks for all the responses, I will definitley call them to see if they are having some sort of day off from being Bankers.

The figures are -
Balance = £68500
ERC = 1% = £685
Payment = Int Only @ 7% (I know, crazy) = £399
Payment = Int Only @ SVR, 3.99% = £227

First post figures were rough, but not that far away when you consider the mad % rate I am on.

kingstreet

Barebear wrote: »

Thanks for all the responses, I will definitley call them to see if they are having some sort of day off from being Bankers.

The figures are -
Balance = £68500
ERC = 1% = £685
Payment = Int Only @ 7% (I know, crazy) = £399
Payment = Int Only @ SVR, 3.99% = £227

First post figures were rough, but not that far away when you consider the mad % rate I am on.

Fair enough. Why are you only looking to SVR? If you're going to pay the ERC, why not see if there's a product transfer at a lower rate, or think about remortgaging to a new lender? Many offers will cover the transfer costs for you.

Barebear

kingstreet wrote: »

Fair enough. Why are you only looking to SVR? If you're going to pay the ERC, why not see if there's a product transfer at a lower rate, or think about remortgaging to a new lender? Many offers will cover the transfer costs for you.

Normally that's what I'd be trying to do, but I've had the house on the market for over a year and just trying to get on the SVR quicker. Though I suppose if there was a fee free SVR with no ERC elsewhere at lower rates, that may be an option. They might ask if the house is for sale though, so I think my best move is to get on the Halifax SVR as soon as possible.

kingstreet

Lenders don't much care if the house is on the market.

Plenty of lifetime trackers out there with no penalties. People on here regularly rave about HSBC and First Direct. Nothing to lose if they charge you nothing for transferring to them...

Thrugelmir

Barebear wrote: »

Thanks for all the responses, I will definitley call them to see if they are having some sort of day off from being Bankers.

The figures are -
Balance = £68500
ERC = 1% = £685
Payment = Int Only @ 7% (I know, crazy) = £399
Payment = Int Only @ SVR, 3.99% = £227

First post figures were rough, but not that far away when you consider the mad % rate I am on.

Interest only no. Unless you have a suitable repayment vehicle.

So would be a repayment mortgage.