Help with product transfer options

getmore4less

If you can't move lenders you don't have a lot of choice.

https://www.halifax-intermediaries.co.uk/products/mortgages/default.aspx

On a £400k mortgage each change of rate of 0.1% covers about £400 extra fees a year.

pyrex

I will likely be able to move to a new lender in 2 years. My wife has stopped working following her maternity leave and I took 2 months off following the birth as paternity leave. I'm a consultant/director of a limited company and the gaps make staying with Halifax the most straightforward option.



Is 1.75% such a bad rate though? I know there is slightly better out there... My father told me he was paying over 5% for 15 years, albeit in a different country.


It seems like the difference between fixing for 5 years at 1.75% and remortgaging every two years, first at 1.64% and then at 1.3% and paying a £1,000 each time is a bit less than £1,800. And that's assuming rates stay low for the next 4 years. (this could be completely wrong)



I'll call my broker to discuss again but maybe I'm overthinking it if the above figures are roughly correct.



Thanks for your help.

[Deleted User]

Hsbc's 5 year rate at 60% ltv is 1.54% and £999 fee.

So Halifax 5year will cost about £4000 extra in fees and monthly payments.

If rates dont move much in the next 2 years then you might be better trying to remortgage to a better lender and then securing a longer term fix at better rates.

I can't tell you if you feel a potential interest rate hike is more of a risk than the definate higher payments the Halifax deal offers.

getmore4less

Think the op is getting quotes for 60%-75% products with Halifax.

Comparison with 60% may not be helpful.

[Deleted User]

Op said moving to another lender would get him 60% ltv. So it's a comparison of tieing in to Halifax at 60-75% rates or jumping to the 60% rates after a couple of years.

Not a perfect illustration by any stretch of the imagination but the general idea is there

Skint2019

I’m with the Halifax too and our deal comes to an end on 31st jan. we are on 1.74 just now and they have offered us 2.59 to remortgage on 60% Ltv. Ive reduced my hours following Mat leave too and I’m worried that we will fail on affordability with other lenders and will be stuck with Halifax ��

haras_nosirrah

2.59% is huge at 60% ltv
what is your loan amount and what is the value of the property

pyrex

I think I’m looking for someone with a crystal ball to tell me what to do ��

I meant that we would be in the 60% LTV bracket after five years and possibly if a new lender did a full valuation (coming inside).

@Skint is that because there’s no product fee? That’s about what it says on the intermediaries site.

Skint2019

Thankyou! I know..I really hope we won’t be stuck. They have our Propery valued at £390k and we have £222k left

Skint2019

So when I log into my account they only give me 2 options. A 3 year fix at 2.59 or a 5 year fix at 2.64