End of fixed - Halifax

blueblazer

Hello,
We currently have £130k on one account with fix ending in November 2019. The rate is 1.54%. We have a subaccount with £30k ending in May 20 at 1.94%. Both with the Halifax. Am I correct in thinking we can move the £130k to another bank so we have mortgages with different banks? I’ve had a look at 5 year fixed deals and Halifax is 2.64% (from memory) and other banks are less than 2%. I’ll ask a broker etc but wanted to check I’m not missing anything? Are Halifax not as competitive any longer?
Many thanks for any help

Tom99

What is the penalty for ending the May 2020 deal? 1% would be £300 so maybe getting a new deal on the whole £160k would work out better than keeping a split deal.

blueblazer

Thank you for the reply - I would need to check but can I have the £30k with Halifax still and say move the £130k to First Direct?

Tom99

blueblazer wrote: »

Thank you for the reply - I would need to check but can I have the £30k with Halifax still and say move the £130k to First Direct?

I don't think so since they will both want a 1st charge on the property.
What is FD 5yr rate, 1,99%?. You can get 4 or 5 deals at 1.75% or less if your loan ratio is low enough.

blueblazer

Thank you - that does make sense so will have to look at moving the full amount but at least understand a bit more. Just did a quick search and saw a few under 2% which is why I thought Halifax seemed high. Loan is £160k on house we bought for £350k a year ago. Thanks again

haras_nosirrah

You won't be able to have a mortgage with two different lenders so you would either need to switch the first one and pay an erc on the 30k or choose a new fix with Halifax.

Fyi twice this week I have had clients contact me saying they have been offered a rate with Halifax in the 2.5 range. On both clients we were able to secure them a lower rate with Halifax than Halifax had offered them

blueblazer

Thank you. Just to confirm, do you mean Halifax offered them a lower rate than it shows on the website once you spoke to the Halifax?

haras_nosirrah

No. When the client contacted Halifax direct they were offered one rate. When we looked on our sourcing system a different rate was available via ourselves. Have had this on 2 yr fixes where the lower rate we got the clients saved around 3.5k over 2 yrs.
Haven't tested with a 5 yr yet but happy to have a look.

blueblazer

Thank you - that is worth being aware of. If you could look, that would be great. It offers 2.44% on 3 years and 2.64% on 5 years when I put in the 0-60 LTV

haras_nosirrah

Getting 1.83% for a 5 yr pt. On a 160k mortgage this saves you £5119 over 5 yrs If on a 25 yr mortgage (would be different depending on years left but you get the idea

amnblog

Halifax, for whatever reason have a habit of not making all their follow on products obvious to borrowers either online, or in Branch.

If you want proper advice around the whole range, consult a Broker.