Halifax deal coming to an end

mex1987

To assuage my girlfriends worry, could you kind people answer a question for me? She has a fixed interest rate of 2.59% with 84K outstanding on her mortgage with the Halifax which is coming to an end in a couple of months. She has spoken to somebody tonight to get on the 1.99% fixed rate, but they've asked for payslips and outgoings. She took the mortgage out before MMR and would probably fail the "stricter" criteria. The new rate would reduce her payments by about £40 a month. She's never missed a payment in 2 years and her LTV is < 45%.

Should she be concerned? I'm pretty sure she'll be fine but she's been looking at the scare stories on the internet too much. Doesn't the TCF (Treating Customers Fairly) ruling by the FCA cover this?

gazfocus

mex1987 wrote: »

To assuage my girlfriends worry, could you kind people answer a question for me? She has a fixed interest rate of 2.59% with 84K outstanding on her mortgage with the Halifax which is coming to an end in a couple of months. She has spoken to somebody tonight to get on the 1.99% fixed rate, but they've asked for payslips and outgoings. She took the mortgage out before MMR and would probably fail the "stricter" criteria. The new rate would reduce her payments by about £40 a month. She's never missed a payment in 2 years and her LTV is < 45%.

Should she be concerned? I'm pretty sure she'll be fine but she's been looking at the scare stories on the internet too much. Doesn't the TCF (Treating Customers Fairly) ruling by the FCA cover this?

I think if you arrange to switch online, it's a much simpler process. Basically, if you switch over the phone, you are taking their advice and as such they have to follow certain guidelines, so tell her to try doing it online.

I believe that if you stay with the same lender and simply move to a new deal, they do not do the same credit and affordability checks.

Flumpybutton

My deal with Halifax was coming to an end and I switched it online to a 1.99% deal saving me over £50 a month and my credit rating is shot to pieces!! I had no problems at all so I think its as Gazfocus stated above.

gazfocus

Flumpybutton wrote: »

My deal with Halifax was coming to an end and I switched it online to a 1.99% deal saving me over £50 a month and my credit rating is shot to pieces!! I had no problems at all so I think its as Gazfocus stated above.

Glad I'm not the only one with a shot credit file and needing to switch to a new deal haha...wish I could get that 1.99% deal though.

amnblog

It is not as simple as suggested above.


Rate switches can be arranged with little fuss on many cases, but certain factors mean Halifax re-check everything including affordability.


These 'certain' factors include mortgages with interest only elements and mortgages running into retirement.


Having your current position checked and not meeting criteria does not necessarily mean a 'no' to a rate switch - we have completed a number of these.


Consult a broker to be guided through the process without fuss, worry, or hassle.

mex1987

Just an update to this. She got the 1.99% rate with no fuss at all. They phoned her back a week later to ask her if she wanted to go ahead. Straightforward, no fuss. Thanks for you replies.