Considering Halifax fixed rate switch offers

gjs6385

Hi all,

Our current 5 year fixed rate mortgage of 2.44% with Halifax ends on 30th September.

If we do nothing then we'll automatically move on to their variable rate, which is currently 7.74% and we obviously have no intention of doing this.

As we're within 6 months of our current deal ending (it was 3 months until quite recently), they're now offering us the following rates based on our current LTV of c.56%, which we can lock in today and switch to from 1st October:

2 years: 4.65% - c.£140 per month increase
5 years: 4.11% - c.£100 per month increase
10 years: 4.05% - c.£100 per month increase

I'm aware how much better these rates were than following the disastrous mini budget last year and there are some straightforward benefits of switching such as no fees/affordability checks/property surveys etc that would likely come with a full remortgage.

In terms of the additional amounts per month they're all affordable but I obviously want to make them as low as possible (as does everyone).

I've also been thinking about discounted variable rates but at this stage they've only offered us the fixed rates or a move on to their standard variable rate as above.  This has made me wonder are discounted variable rates only for new customers and in which case might it be worth us looking at remortgaging with another provider?

Also Halifax don't seem to have mentioned about what would happen if we decided to lock in one of the new fixed rates they have offered but they subsequently drop between now and October, i.e. would we be able to move onto a lower one, which would also be another big consideration.

At the moment I'm just considering what, if anything, to do for the best at this stage.  I know this is very much a "crystal ball" post but would be very grateful for any thoughts/comments.

Thanks.

dougson

I'm in a very similar position with Halifax and they told me the same thing with regards a tracker. Coincidentally my current deal also ends 30 September and I've a LTV in the 50% ballpark.

A product transfer (ie staying with Halifax) makes sense for me, but I've had to take on c 10k credit card debt for building work (share of freehold) which I can manage, but doesn't look great from an affordability angle, plus last time I changed lenders I found myself on SVR for a few weeks, which cost me everything I had "saved" by switching provider. SVR being considerably lower a couple of years back I was keen to avoid that again. 

Long story short, I opted for the 5 year fix (increase of 180 p/m for me) the 4.65% was adding too much on the monthly payments given I'm trying to prioritise reducing the credit card balance. Halifax did say if their rate serious between now and then they can do it at the lower rate, so made sense for me to accept the 4.11.

amnblog

Also Halifax don't seem to have mentioned about what would happen if we decided to lock in one of the new fixed rates they have offered but they subsequently drop between now and October, i.e. would we be able to move onto a lower one, which would also be another big consideration.

If you secure a rate now and a better rate comes along you can cancel your initial reservation and secure the new rate.

That will hold until 28 days after the new rate application goes live (not to be confused with the start date). In your case that would appear to be 1st September. Your final 28 days to change you mind will be ticking from that date.

Halifax review their product rates at the start of each month. That is not to say they won't without warning change that policy, but that has always been the way they do it.

One final point - talk to a Broker about your situation as they may be able to secure you a 2 year rate at 4.34% or 5 year at 3.94% (Halifax do not necessarily offer all rates through both the direct and broker channels).

chanz4

5 year at the moment think too risky to lock in at , as is 10

RelievedSheff

chanz4 said:

5 year at the moment think too risky to lock in at , as is 10

That rather depends on what your situation is and how risk adverse you are.

We will have ten years remaining and a relatively small balance at the end of our current product and we have already said that if we can get something under 4% then we will be happy to take that for the remaining term.

chanz4

RelievedSheff said:

chanz4 said:

5 year at the moment think too risky to lock in at , as is 10

That rather depends on what your situation is and how risk adverse you are.

We will have ten years remaining and a relatively small balance at the end of our current product and we have already said that if we can get something under 4% then we will be happy to take that for the remaining term.

well think I was kinda right on the risk, imagine if they took the 10 year 

BarelySentientAI

chanz4 said:

RelievedSheff said:

chanz4 said:

5 year at the moment think too risky to lock in at , as is 10

That rather depends on what your situation is and how risk adverse you are.

We will have ten years remaining and a relatively small balance at the end of our current product and we have already said that if we can get something under 4% then we will be happy to take that for the remaining term.

well think I was kinda right on the risk, imagine if they took the 10 year 

And were paying about the same as they would be on any other deal?

chanz4

BarelySentientAI said:

chanz4 said:

RelievedSheff said:

chanz4 said:

5 year at the moment think too risky to lock in at , as is 10

That rather depends on what your situation is and how risk adverse you are.

We will have ten years remaining and a relatively small balance at the end of our current product and we have already said that if we can get something under 4% then we will be happy to take that for the remaining term.

well think I was kinda right on the risk, imagine if they took the 10 year 

And were paying about the same as they would be on any other deal?

rates are going down

BarelySentientAI

chanz4 said:

BarelySentientAI said:

chanz4 said:

RelievedSheff said:

chanz4 said:

5 year at the moment think too risky to lock in at , as is 10

That rather depends on what your situation is and how risk adverse you are.

We will have ten years remaining and a relatively small balance at the end of our current product and we have already said that if we can get something under 4% then we will be happy to take that for the remaining term.

well think I was kinda right on the risk, imagine if they took the 10 year 

And were paying about the same as they would be on any other deal?

rates are going down

I'm amazed that a slight change in recent rates is telling you what is going to happen for the next nine years.

You must have won the lottery several times with that skill.