Halifax 2 years means 28 months

humadoon

I was thinking I'll be able to get out of the my current interest rate in Oct as my 2 years will be finishing on this date however when I called Halifax after 1 hour wait I was told I can only move in Feb 2015,
I said how is it fair I got my mortgage in Oct 2012 so two years means Oct 2014, but how do they justify 4 months on top,

They said they can and the product end date is Feb 2015.

I think it's unacceptable and not fair at all.

plunt

Halifax will let you remortgage 3 months before the end of your product so long as it's to another of their products I believe.

Not that I think it's fair or unfair but if interest rates were higher would you not be happier that you managed to squeeze an extra couple months at a lower rate. So kind of works both ways

Check you original documents and it will probably have told you this in there so guess it's just important to read everything carefully!

Imma_Number

A thread from a few years ago with a similar situation:
https://forums.moneysavingexpert.com/discussion/2785944

ACG

If you think its unfair, why did you agree to it?

Take a look at your KFI and/or mortgage offer, it will have an end date.
Always read the paperwork... its probably the biggest loan you will ever have, the KFI is only a couple of pages.

Thrugelmir

humadoon wrote: »

I think it's unacceptable and not fair at all.

It's what you signed up to.

Or didn't you bother to read the offer documents properly.

GMS

If rates had risen would you be complaining about the extra months?


As has been said, why agree to it if unhappy?

dunstonh

I said how is it fair I got my mortgage in Oct 2012 so two years means Oct 2014, but how do they justify 4 months on top,

They said they can and the product end date is Feb 2015.

I think it's unacceptable and not fair at all.

The regulator has no problem with it and it comes down to simplicity. As long as ballpark range matches the deal and the date is disclosed (as they always are on the contract you read and signed) it is fine and logical.

Can you imagine the marketing costs for running a deal that required them to specify the extract range. Today they would have a deal of 2 years, 2 months and 4 days. Tomorrow they would have to bin all that marketing material and print off new ones. The day after would be the same.

how do they justify 4 months on top,

Because that is what it said in the contract you signed. Not hidden in some small print but in the main section and easy to see.

Look at the current deals: http://www.halifax.co.uk/mortgages/moving-home/?pagetabs=0#help-to-buy
It tells you the rounded term and the tie in period date. Nice and clear.

humadoon

Help me understand here

how much is 2 years? its 24 months and if a product is advertised 24 months it should be 24 months Simple.

if i borrow something from you for 2 years you would want it back in 2 years, i am sure you wont be pleased if i will keep it for extra 4 months.

the bank is intentionally confusing customers it won't hurt them if they say 27 or 28 months.

mrginge

As has been said, fixed products never run for exactly 2,5 ..etc years.
The bank can't go to their lender every day asking to borrow individual amounts for exactly two years.
Or rather they could, but they'd then end up adding a few extra percentage points on to their loans.

Read your KFI.

dunstonh

how much is 2 years? its 24 months and if a product is advertised 24 months it should be 24 months Simple.

It cant be. 100 people could apply for a fixed rate mortgage today. However, all 100 could start their mortgage on different dates and therefore have different periods that the fixed rates would last over. Not one of those may be exactly 2 years. They could be more or less. People apply on different dates and people advance their mortgages on different dates. The financing for the fixed rate has fixed dates. So, they have to use the fixed date method.

if i borrow something from you for 2 years you would want it back in 2 years, i am sure you wont be pleased if i will keep it for extra 4 months.

I would never be in that position and nor are fixed rate mortgage borrowers as their contract never said 2 years. It had the date of expiry of the deal on it.

the bank is intentionally confusing customers it won't hurt them if they say 27 or 28 months.

Seeing as you dont appear to have read the contract before you signed it or the KFI issued at the time (both of which would have had the date of expiry), would it matter if the bank said 24, 27 or 28 months? You never read it.

betmunch

Not this again?......

It clearly states on the KFI and the offer letter when the product period ends.

As lenders dont know exactly when you will actually move they use a generalised description of the product, which as someone stated above the FCA is happy with.

95% of lenders do it this way. If you're not happy with this system restrict yourself to one of the few lenders that will do it for exactly 2 years from completion.