Fixed Rate Deal ending - are we stuck on AVR? Halifax. 31 March 2020 at 1:05PM in Mortgages & Endowments 9 replies 221 views

sheepdemon_2

Our Fixed Rate mortgage ends soon, at which point we will move onto the banks variable rate/standard mortgage rate for interest.  This will amount to around a £200 a month increase in mortgage payments.  We were right at the end of taking out another mortgage deal when all this started kicking off (documents signed and sent to solicitors 2 days before the lockdown started) but now with the land registry being closed and the solicitors no longer open we're sort of screwed.  Bank have advised there is no way to extend our current deal, and going on a payment holiday will not prevent the new interest rate kicking off - are we just screwed for the time being?

Our current mortgage is with Halifax and they've said nothing they can do, new mortgage with Platform, also nothing they can do.  Mortgage broker is not answering phone calls or emails at the moment but is a largish company.

amnblog

Why don't you just take a new rate with Halifax if you want to avoid the 3.74% rate.
When does your current rate end?

WillimS2020

amnblog said:

Why don't you just take a new rate with Halifax if you want to avoid the 3.74% rate.
When does your current rate end?

Some people can't afford a hike of £200 per month, plus if they sign up to it its a 'contract' that will have penalties if they try to opt out at a later date. 

Thrugelmir

Go online and select a new product from those on offer from the Halifax.  Your current product cannot be extended as its come to the end of it's term.  
Are you increasing your total borrowing in remortgaging with Platform? 

sheepdemon_2

amnblog said:

Why don't you just take a new rate with Halifax if you want to avoid the 3.74% rate.
When does your current rate end?

Current rate ends within days.  We have a new mortgage arranged with a new supplier but as the Land Registry is closed we cannot move over to them.  The best deal Halifax could give us was like 2.6%, the Platform deal was nearly a full % point lower at 1.87%.  Its not loose change over the course of the 2 years we'd be locked in.  I think at this stage we'll just take the hit temporarily and move when this all clears up.

Thrugelmir

Are your solicitors not operating at all? 
Surprised to hear that Land Registry is closed. 

amnblog

What is your balance with Halifax and the property value?

csgohan4

WillimS2020 said:

amnblog said:

Why don't you just take a new rate with Halifax if you want to avoid the 3.74% rate.
When does your current rate end?

Some people can't afford a hike of £200 per month, plus if they sign up to it its a 'contract' that will have penalties if they try to opt out at a later date. 

Thats why customer retention products is the least worst option, or OP can wait for the SVR and hope the covid situation will calm down, who knows how long? while paying a high interest , which is it?

These are extenuating circumstances and unusual indeed. 

Thrugelmir

Take the payment holiday and pay whatever you can off the mortgage in the meantime. 

davidmcn

Thrugelmir said:

Are your solicitors not operating at all? 
Surprised to hear that Land Registry is closed. 

Depends where the OP is, the registers are effectively shut in both Scotland and Northern Ireland. Scottish Parliament is putting through legislation today which will allow more online registrations, though I suspect remortgages won't be top of the priority list for anyone. If the remortgage solicitors are shut it's kind of academic anyway.