Moving from Fixed Rate to STD Variable Rate

littlebadger

I took out a 10 year fixed rate mortgage with the Halifax. It's fixed at 6.10%.
Would there be a fee if I wanted to leave the fixed rate and move to the Standard Halifax variable rate?

I don't want a new deal I just want to get out of my current deal.

Thrugelmir

Yes they would. Read your mortgage documentation or give them a call.

Yorkie1

As Thrugelmir says, getting out of your fixed term will incur what is called an Early Redemption Charge (ERC). This was set out in your initial documents.

You should be aware that some lenders refuse to let you stay with them if you come out of a fixed term product - so what you propose may not be permitted even if you offered to pay the fee.

pjread

I'm fairly sure Halifax ERC's are usually 1% per year outstanding (poss a 5% cap?). But check your paperwork.

Any you'll probably need to move lenders - what's your LTV? 6%+ is fairly high but then a 10 year fix is also a good guarantee, you take your chances and I might be tempted by a 5-6% fix for 10 years myself (though not a 5 year or less one personally)

Simon_gloster

You can't come out of it and move onto the SVR. You need to see it out to move onto it.

If you did a rate transfer whilst tied in you need to pay the ERC with a debit card ti get a new rate.

dimbo61

If you read the T and C,s of your mortgage offer you may find you can overpay ?
Now rather than pay upto 5% fee to leave your current deal why not overpay every month
You will save 6.10% tax free

originalmiscellany

Good sport dimbo! That would make a big difference, and you'd really notice a huge difference even to a small overpayment every month if at all possible.

littlebadger

dimbo61 wrote: »

If you read the T and C,s of your mortgage offer you may find you can overpay ?
Now rather than pay upto 5% fee to leave your current deal why not overpay every month
You will save 6.10% tax free

Thanks!
I'm going to go with this option.