Halifax fixed rate to variable rate to fixed rate

I'm optimistic about interested rates in the short-term. Rather than choosing a new fixed rate deal at a high rate before my current deal ends, I'm thinking of letting the deal end then spending time on the variable rate before switching to a hopefully cheaper rate.
If I do this, are there some charges that I will incur that I wouldn't have incurred if I'd gone straight to a new fixed rate, other than the obvious extra interest?

Comments

  • amnblog
    amnblog Posts: 12,385
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    edited 18 October 2023 at 11:14AM
    No extra charges but think carefully about this, it is a high risk strategy.

    With Halifax you can book a rate six months ahead and cancel it before you use it should you decide to - that takes the risk away.

    Finally, if your mortgage is over £250,000 consult a Broker, don't secure a new rate direct with the Lender. Otherwise you could miss out on a more attractive rate.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • @amnblog excellent, thanks very much for that. Mortgage is only 40k and I can handle a few hundred extra quid per month if I loose on the gamble, but still would like to reduce overall costs. Fixed ends at the end of the current month and the best 2 year available is 5 point something percent. What would you do?
  • amnblog
    amnblog Posts: 12,385
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    edited 18 October 2023 at 11:46AM
    I'd think very carefully before picking up an 8.74% rate. 

    Presumably you can get 5.90% on a two year fixed or 5.20% on a five year fixed.

    Every month you are trying to be clever will cost you £94 to £121

    Remember, no action by 1st November puts you minimum 30 days on 8.74%
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Sorry, are we not here to learn to be clever about money? Isn't that the whole point? Am I missing something?
  • gjs6385
    gjs6385 Posts: 295
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    Sorry, are we not here to learn to be clever about money? Isn't that the whole point? Am I missing something?
    You might want to think before you post.

    You’ve asked a question that’s been very well answered with sound advice and you’ve responded in what appears to be a very passive aggressive and sarcastic tone.

    Thank you wouldn’t have gone a miss and I can’t see many people wanting to spend time trying to help you with that kind of attitude.
  • ACG
    ACG Posts: 23,611
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    I am assuming amn numbers are correct.

    You can see what he is saying surely? You are trying to play the game in the hope that in the long run you are better off. Its costing you around £100. I think it is unlikely you will win with this idea personally.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Zerforax
    Zerforax Posts: 334
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    Couldn't you just go onto a tracker deal? So if the interest rates come down, you'll benefit. However that rate should still be lower than the standard variable rate (which as others have said, is very high).
  • amnblog
    amnblog Posts: 12,385
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    Halifax do not do tracker deals.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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