Fixed isnt fised....

Thor_Odinson

I have a fixed mortgage with Halifax till August this year. As everyone know they have increased the SVR but have increased my fixed payments too. Stating that the mortgage set (£999) taken at the time now isnt fixed so payments go up.
Am very annoyed - the offer letter states my payments are fixed for 27 months but now that is not true. Am also trying to check if their SVR went down over the last two years as my payments never decreased!!
Can they charge me more on a fixed rate because fees arent fixed - even though they dont state this when you take the mortgage out.
Am not impressed with Halifax....take the tax payers money quick enough!:(:(:(:(:(:(:(:(:(:(:(:(

Peelerfart

"Stating that the mortgage set (£999) taken at the time now isnt fixed so payments go up."

Are you saying that they amended the mortgage fee you paid when you took the mortgage out?

JimmyTheWig

Reading this and your other thread, Thor, it sounds to me that you borrowed some money on a mortgage. There was a £999 fee for this. You had the option of paying this fee upfront or adding it to the mortgage. If added to the mortgage, it sounds like interest is charged on it at SVR rather than at your product rate. [I'm sure when I've added fees to a mortgage with Santander the fee has been interest-free, but I guess different banks are different.]

So when the SVR goes up the interest on the £999 goes up.

But an increase of half a percent should only give a mortgage payment increase of around 42p.
Is this what we're talking about, OP?

gingeralan

Thor_Odinson wrote: »

I have a fixed mortgage with Halifax till August this year. As everyone know they have increased the SVR but have increased my fixed payments too. Stating that the mortgage set (£999) taken at the time now isnt fixed so payments go up.
Am very annoyed - the offer letter states my payments are fixed for 27 months but now that is not true. Am also trying to check if their SVR went down over the last two years as my payments never decreased!!
Can they charge me more on a fixed rate because fees arent fixed - even though they dont state this when you take the mortgage out.
Am not impressed with Halifax....take the tax payers money quick enough!:(:(:(:(:(:(:(:(:(:(:(:(

I used to work for Halifax and can confirm that if you don't pay your arrangement fee upfront then it can be borrowed but on the svr. This will mean payments can and do fluctuate if rates change. This was one call I hated getting, it is in t&c's somewhere. Only thing to do really it's if you make any overpayments request that it goes towards paying off the arrangement fee first.

maninthestreet

Even a 5% p.a increase in the SVR equates to little more than an extra £4.20 a month for £999 - it's hardly a King's ransom, is it?

kingstreet

I've just looked at the KFI for my last Halifax case and the £999 fee is included with the mortgage amount in the fixed rate. So a fix of 3.39% applied to both the £90,000 mortgage and the £999 fee.

When I keyed the application, I ticked the "add fee to loan" box so it was offered like that.

If you don't tick the box, the offer will read that you are paying the £999 fee yourself. If you don't then do that, interest is charged at the SVR to enable you to repay the fee at any time, penalty-free.

Obviously, if it's added to the fix, any early repayment charges which apply to the fix would also apply to repaying the fee early.

OP - what does section 4 of your KFI say? What does section 4 of your offer say?

gingeralan

maninthestreet wrote: »

Even a 5% p.a increase in the SVR equates to little more than an extra £4.20 a month for £999 - it's hardly a King's ransom, is it?

No it isn't, but it's annoying if it's not made clear

JimmyTheWig

But the OP doesn't read like it's a 42p increase. Reads more significant than that.
I'm not saying that for just a 42p increase you shouldn't worry about it - if anything it's at least interesting to some of us.
But I still think you'd mention it.

So I'm guessing either Halifax have increased the payments by more than 42p and got it wrong or the OP hasn't realised that the increase is so small and is worrying about nothing.