Halifax mortgage SVR question

HomeOwner5

Hi All,

I have a Halifax residential interest-only mortgage, of which the deal has just finished and the mortgage has reverted to SVR.

However, I've noticed that the first repayment with the SVR, has reduced the capital debt I have (the mortgage value). I've also noticed that Halifax don't seem to offer interest-only mortgages, so has my mortgage been switched to repayment?

I also notice that the SVR is 3.99% but the repayment is a lot less than what a repayment mortgage @ 2.8% would be (£1020 for the same term/deposit/mortgage as with my current mortgage). Why would this be?

Thanks

MortgageMamma

Have you called Halifax and asked them to explain this to you? First of all you need to find out if you are still interest only or if you are repayment. Then you should see if there is a better deal available with NatWest taking into account the size of your mortgage and added fees. Then you need to compare it to other deals from other lenders and see if its worth switching.

A broker can do it all for you, but you need to do the first bit which is checking the terms with Natwest.