Penalised for having small mortgage! Any ideas?

julie.julie_2

My fixed rate deal is coming to an end and I now have a £33,000 mortgage left. I can't find any deal to transfer to where the exit and entrance fees don't outweigh the savings. Have asked current lender (halifax) in branch and via phone for loyalty discount but no go. Have I got to settle for 7.75% SVR?

herbiesjp

You should be able to find a better alternative from Halifax than their SVR.

There are also other lenders that can offer fee free re-mortgage deals better than Halifax's SVR

Gorgeous_George

jj

What is your house worth? This thread (clicky) could be interesting. Take a larger mortgage and overpay the excess.



GG

Leon_W

Agree with herbiesjp

It can be frustratingly difficult with small mortgages to get the very best deals, but it does come down to the economics of moving a relatively small amount of money. The arrangemnet fees on fixed rate loans and exit fees will wipe out any savings you will make and your size of mortgage has now become uneconomic to swap every few years.

You don't say what term you have left, but if it's say 5 years and you want a fixed rate then you could bite the bullet, remortgage one last time, and get a 5 year fixed rate.

Otherwise go for a low margin tracker (Woolwich or similar) for the rest of the term.

cattie

It's very sad that Halifax no longer offer an loyalty deals as they did a few years ago, however, there should be a better rate than svr you can transfer to with them that have no application charges & of course you'll not have to pay any exit or legal fee.

Make an appointment with one of their advisors to see what better deals may be on offer to you but also try other lenders to compare. Nationwide are happy to loan on smaller mortgages, but I know when I was shopping around to remortgage I found it actually paid me to stick with the Halifax on a tracker rate because of the fees involved by switching to another lender.

julie.julie_2

House is worth around £150,000. Term left on mortgage as it stands at the mo is 16yrs.

I have spoken to two of Halifax's advisors - one at branch, one via phone and best they can offer is 10yr fixed which saves me about £18 per month - i really don't want to fix for that long, would like to have it paid off by then. Other no fee deals I have looked (so far anyway) at don't accept mortgages as low as mine.

Halifax said £150 exit fee plus £50 for deed transferance.

regularsaver1

As you've said, these are the only rates available for your balance to change your deal with Halifax. I found these on the website:


http://www.halifax.co.uk/mortgages/existingcustomer_5yrfixed.asp 5 year fixed

http://www.halifax.co.uk/mortgages/existingcustomer_10yrfixed.asp 10 year fixed

http://www.halifax.co.uk/mortgages/existingcustomer_termtracker.asp Term tracker

regularsaver1

found this as an example from nationwide website. It says a minimum of £25000

http://www.nationwide.co.uk/mortgage/remortgage/interest_rates.htm

"A £25,000 minimum borrowing limit applies to all 2 year no fee products"

UK007BullDog

Minimum with a Natwest mortgage is £15,000 and the rate is better than Halifax.

mussgo

I think i was lucky, I got a 1.35 under the SVR when my last fixed deal came to its end, by then my mortgage was under 10 000. I have stayed with the same BS I had from the start.

I didn't shop around as I knew that no one would be interested in anything as low as that!

regularsaver1

http://www.natwest.com/personal02c.asp?id=PERSONAL/BORROW/MORTGAGES/REMORTGAGING

Here is the natwest site

some of the products have higher arrangement fees than others, as per the rates