Applying for lower interest rate

mark_van_Cuylenburg

We have a mortgage from Halifax which we obtained in 2008. Initially we were fixed for 4 years and then went onto 1 1/2% above base rate. No problems encountered, payments all up to date. Now with interest rates rumored to be rising we wanted to fix at a lower rate. We contacted Halifax and they appear to be selling us a new product. Is this correct? Or should they just adjust the interest rate on the existing product? Are we just feeding the mortgage adviser commission? Is it necessary to buy a whole new product?

[Deleted User]

If you want a product with a different rate, you need a new product.

There would be little incentive for them to simply reduce people's interest rates without new minimum terms, product fees or ERCs.

kingstreet

Halifax has product transfer options, from which you pick.

When the new product ends, you will revert to the standard variable rate which, IIRC is 3.49%.