Halifax Product Switch with two sub accounts

hcb42

I have a mortgage with two sub accounts, £68K with c10 yrs to run and c£21K with slightly under 10 yrs to run, the latter being on a higher rate of 5.89% as a further advance for home improvements

The main mortgage fixed rate (2,89%) comes to an end in Aug, so I thought I was now in the window for a product switch.

I had an incredibly complicated call with the Halifax today, who state they cannot help me consolidate these two pots and remortgage on their 1.99% rate. LTV circa 33% at present

I can switch pot one online to the 1.99% and the Halifax rep has told me over the phone that when the further advance term ends in feb 2016, I can switch that too, and based on today's rates, that would also be at 1.99%.................I am reluctant to trust that advice.

I am sceptical. If i switch over on non advised which I can do on the web without having to go through the rigmarole, then can I really just "product switch" this over in Feb at the prevailing rate.? My question was why am I then paying 5.89% on that bit in the first place?

It feels like I will always have two different terms and ERCs which I was trying to reconcile. Halifax PLC advised me that if I went in branch they wouldn't recommend I switch this second pot early anyway? I have done the maths and am comfortable. Logically it seems my only option is to switch provider, which I do not want to do, but seems I have no choice. I am not looking to increase overall borrowing or term, and mortgage total owing is currently £90K, earnings £100K. I dont want any more than a 2 yr fix either.

I dont feel like I want to tie myself in for another two years, if I can only port £68K as I won't realise the rate benefit if we do up and move, (unlikely but possible) nor do I trust their advice over the phone but they seemed reluctant to even make an appt!!!!

Only banked with Halifax PLC for 40 years since age 7 so frustrated is not the word tonight, I thought it would be easier than this.

betmunch

Can you bullit point your questions?

It seems like your not happy to take advice, and not happy to decide on your own.

libf

Wait until Feb and then switch both at the same time so that they're combined?

hcb42

Hi

I have not had any advice, only a phone call, responding to my basic online request for an appt to discuss I am happy to make my own decision only and have spreadsheets galore to back up my decision, so I was more than happy to make a decision on my own, only Halifax wont make an appt!!!! It doenst seem difficult, 33% LTV, income more than comfortable and no adverse credit.

The crux is, I am dubious that if I fix the £68K on a new rate now (which is what Halifax told me to do over the telephone, only that will be an unadvised conversation) , what I can do with the £21K next year. I am confused as to why by next year this will qualify for a 1.99% rate, (i.e. same as main mortgage, which I realise might change in the meantime) when it was 3.00% higher a year ago when I took it out. (Further Borrowing). Today Halifax has confirmed that would be a product switch, but the call did not fill me with confidence, so I dont want to tie myself down if that "advice" is wrong (not the rat,e the advice) Particularly as there will be no record of this if I do not have an appt...!

I dont want to accept a new rate online for my £68K sub account,and be tied to another 2 yr fix, to find I am stuffed with this extra borrowing next year, and the 1.99% (or prevailing rate) does not apply. In that case I would be better just sorting it once and for all now, but Halifax state they cannot do this.

If I do nothing, I will end up on the SVR, so mortgage payment will go up I think. I could switch suppliers completely, which I wanted to avoid, but I think following their "advice" now, will store up problems for later.

I find it weird that Halifax do not want to talk or do not understand the question. I realise there is a small ERC on the extra borrowing (£400, they told me tonight , I am already over that) , but I have already factored that in. Easy for me to go elsewhere, I just didnt want the hassle.

hcb42

Or to shorten my question, is it correct that despite the fact I have £21K under a further borrowing pot until April next year, I will be able to product switch that at a more normal rate of borrowing i.e. currently 1.99% if I had to do that today (as confirmed by Halifax PLC) assuming that the other £68K of my mortgage will be on a new fixed rate/ter,, (currently 1.99%/2yr)

amnblog

You need to get some advice from a broker, plain and simple.

Otherwise you are firmly in the hands of Halifax and only making decisions based on the options they provide.