New Halifax 3.6% 3yr Fixed Rate - worth going for?

Irn_Dru

Hi everyone,
I'm currently on a 2yr fixed rate at 2.8% which ends in September 2023. 
As our LTV is less than 60% we've been offered the chance to take up their offer of a 3yr fixed rate at 3.6%.
We can't decide on whether to switch as we'd be paying to leave our current deal (about 1.5k ERC) just to enter a deal which is technically more expensive for us.
But given how interest rates may rise in the next year or two, does it make sense just to go ahead and switch.
I guess it's unlikely we'll be offered 3.6% next summer when we come to renew, but who can say?
Any thoughts would be welcome.
Thank you!
Andrew

RobM99

"Who can say?" sums up the dilemma!

simon_or

Since you're already with Halifax, if you're in the market for a 3 year fix and don't mind stumping up the ERC and paying 0.8% extra for a year for the certainty, then you should go for it. With government borrowing costs and swap rates rising again, you can guarantee that a 3.6% rate switch is not going to be around for much longer.

Who can say what will turn out better financially in hindsight.

raf300

Seems an excellent rate to me. Is that direct with Halifax as an existing customer? 

I just checked the Halifax site and for new customers is 6.25% fix for 2yr and 5.75% for 5 yes 

Irn_Dru

raf300 said:

Seems an excellent rate to me. Is that direct with Halifax as an existing customer? 

I just checked the Halifax site and for new customers is 6.25% fix for 2yr and 5.75% for 5 yes 

I'm an existing customer with them. I also noticed it wasn't on the website. 
You could try giving them a call to check - I got through in 3 mins this morning...

clueless_but_curious

At last...some sense from a major lender.  Base rate is still only 2.25% and you are a good customer with a good LTV.  If I was running a bank I would be offering a similar product

Saint84

Irn_Dru said:

Hi everyone,
I'm currently on a 2yr fixed rate at 2.8% which ends in September 2023. 
As our LTV is less than 60% we've been offered the chance to take up their offer of a 3yr fixed rate at 3.6%.
We can't decide on whether to switch as we'd be paying to leave our current deal (about 1.5k ERC) just to enter a deal which is technically more expensive for us.
But given how interest rates may rise in the next year or two, does it make sense just to go ahead and switch.
I guess it's unlikely we'll be offered 3.6% next summer when we come to renew, but who can say?
Any thoughts would be welcome.
Thank you!
Andrew

Seems like a good deal.

did you call up today to get that then?
do you know what they were offering for a five year fixed?

Irn_Dru

Saint84 said:

Irn_Dru said:

Hi everyone,
I'm currently on a 2yr fixed rate at 2.8% which ends in September 2023. 
As our LTV is less than 60% we've been offered the chance to take up their offer of a 3yr fixed rate at 3.6%.
We can't decide on whether to switch as we'd be paying to leave our current deal (about 1.5k ERC) just to enter a deal which is technically more expensive for us.
But given how interest rates may rise in the next year or two, does it make sense just to go ahead and switch.
I guess it's unlikely we'll be offered 3.6% next summer when we come to renew, but who can say?
Any thoughts would be welcome.
Thank you!
Andrew

Seems like a good deal.

did you call up today to get that then?
do you know what they were offering for a five year fixed?

When I called up last week one of their mortgage advisers told me I'd get 3.6% if I brought my LTV down to 60% or below.
I believe there is no equivalent 5 year fixed - it's only 3yr that's being offered.
Also, the rate is only guaranteed until end of October, not for 6 months once accepted, so it looks like now or never - unless of course they choose to extend the offer until Nov.

hildosaver

I just rang Halifax and they confirmed that I would be eligible to switch to the 3yr rate of 3.69% on 1st November which is brilliant news for me - just hope to goodness that rate is still available on that date. I could switch now but it would cost me just over £1k to do it so for the sake of 3 weeks I am willing to take the chance.

They said this was an offer just launched as a gesture from the bank to their customers due to the current cost of living crisis.

simon_or

As you're already with Halifax, will they not allow you to reserve the switch and set it to start on 1 Nov? I would be surprised if it was still available after the month.

hildosaver said:

I just rang Halifax and they confirmed that I would be eligible to switch to the 3yr rate of 3.69% on 1st November which is brilliant news for me - just hope to goodness that rate is still available on that date. I could switch now but it would cost me just over £1k to do it so for the sake of 3 weeks I am willing to take the chance.

They said this was an offer just launched as a gesture from the bank to their customers due to the current cost of living crisis.

hildosaver

simon_or said:

As you're already with Halifax, will they not allow you to reserve the switch and set it to start on 1 Nov? I would be surprised if it was still available after the month.

hildosaver said:

I just rang Halifax and they confirmed that I would be eligible to switch to the 3yr rate of 3.69% on 1st November which is brilliant news for me - just hope to goodness that rate is still available on that date. I could switch now but it would cost me just over £1k to do it so for the sake of 3 weeks I am willing to take the chance.

They said this was an offer just launched as a gesture from the bank to their customers due to the current cost of living crisis.

I asked about this and they said that all I could do would be to break from my current deal for £1k and switch today.