Halifax rate increase letter in the post

Mordex

Hi all. I'm about a year in to my tracker mortgage 2 year term. In the post the morning I had a letter from the Halifax saying they are increasing there rate from 3.5% to 3.99%

I'm sure other people have the letter too. A paragraph states "why has my mortgage gone up even if the base rate has not" and goes on to explain that the cost of lending money has gone up so the rates off up.

Can they even do that.? Seems really unfair when the whole point of a tracker is to go up and down with the base rate not go up due to the bank not making enough money. I got this as I risked the base rate not changing for two years other wise idof got a fixed rate. No doubt they may have gone up too.

Anyway. Anything I can do?

Thanks

KevMaw

Mordex wrote: »

Hi all. I'm about a year in to my tracker mortgage 2 year term. In the post the morning I had a letter from the Halifax saying they are increasing there rate from 3.5% to 3.99%

I'm sure other people have the letter too. A paragraph states "why has my mortgage gone up even if the base rate has not" and goes on to explain that the cost of lending money has gone up so the rates off up.

Can they even do that.? Seems really unfair when the whole point of a tracker is to go up and down with the base rate not go up due to the bank not making enough money. I got this as I risked the base rate not changing for two years other wise idof got a fixed rate. No doubt they may have gone up too.

Anyway. Anything I can do?

Thanks

I had the same, I guess everyone with the tracker did.
It's a big surprise to me, disgusting treatment of customers.
Times are tough and every borrower has been praying for the bank rate to stay low. By stealth however, bad firms always take your cash! Shame on you Halifax!

A better idea would be to take better control of card fraud!

The_J

A tracker follows the bank of england base rate.

Their rate is the Standard Variable Rate which doesn't follow the BoEBR. They can change it when they like. You are not tied in so are free to leave if you are upset?

edit: If anyone has been "praying for rates to stay low" then I urge of you to get your finances sorted as soon as possible. You have to plan for higher rates now. If you don't have much equity in your property plan for 5-7% interest rates, if you are struggling now then I assure you, it's only going to get worse.

opinions4u

Mordex wrote: »

Hi all. I'm about a year in to my tracker mortgage 2 year term. In the post the morning I had a letter from the Halifax saying they are increasing there rate from 3.5% to 3.99%

It says they are changing the standard variable rate that applies to your mortgage at the end of the tracker period.

I'm sure other people have the letter too.

You would be right to have a persecution complex if it was only you.

A paragraph states "why has my mortgage gone up even if the base rate has not" and goes on to explain that the cost of lending money has gone up so the rates off up.

The cost of raising money to lend has risen.

Anyway. Anything I can do?

Read the letter again and realise that it doesn't apply during the period of your tracker. Just afterwards. When you're free to remortgage.

KevMaw wrote: »

I had the same, I guess everyone with the tracker did. It's a big surprise to me, disgusting treatment of customers.

It would be more disgusting if they went bust (again) creating mass uncertainty for millions of savers.

Times are tough and every borrower has been praying for the bank rate to stay low. By stealth however, bad firms always take your cash! Shame on you Halifax!

In what way is it "by stealth"? They are not changing the tracker product that you are currently on. They are advising you of a change to their SVR. Which is still 1.00% lower than Alliance & Leicester mortgage customers are paying.

A better idea would be to take better control of card fraud!

Is that why card fraud is at a 12 year low perhaps?

blacksta

opinions4u wrote: »

It says they are changing the standard variable rate that applies to your mortgage at the end of the tracker period.

You would be right to have a persecution complex if it was only you.

The cost of raising money to lend has risen.

Read the letter again and realise that it doesn't apply during the period of your tracker. Just afterwards.

it is amazing how people dont read letter clearly.

StephenM_2

I'm on a Halifax lifetime tracker and got the same letter.

This morning I got the follow-up letter which gives my new monthly payment. Its actually gone down by about £2 a month with effect from next month. Not sure how they worked out, but I'm not going to complain.

mintymoneysaver

It will have gone down because over the past year you will have paid some money off the original amount, so you will owe less.

StephenM_2

mintymoneysaver wrote: »

It will have gone down because over the past year you will have paid some money off the original amount, so you will owe less.

Last time I paid more than the contractual monthly payment was nearly 2 years ago (June 2010).

rothchick

StephenM wrote: »

Last time I paid more than the contractual monthly payment was nearly 2 years ago (June 2010).

Was your payment recalulated after this exta payment? If not that's probably the reason it has gone down now. If you don't ask the Halifax to recalculate your payments after you contribute more than the contractual payment this won't be picked up until the next rate change
.