Help! I chose a new product on the last day of my fixed term!

Edi81

Rich1880 said:

Hi all on a similar theme - my new rate of 5.56% started on the 1/1/24 but I see they are now offering 4.90%. I am considering cancelling as have 28 days to do this. What I am unclear about is what rate I’ll be on for January if I do that now? Would it be 8.74% for the whole month or just the days from the point of cancellation? Halifax mortgage advisor was completely sure! 

You won’t have 28 days to change your mind. If you want the new rate you will need to pay the ERC. 

Rich1880

Edi81 said:

Rich1880 said:

Hi all on a similar theme - my new rate of 5.56% started on the 1/1/24 but I see they are now offering 4.90%. I am considering cancelling as have 28 days to do this. What I am unclear about is what rate I’ll be on for January if I do that now? Would it be 8.74% for the whole month or just the days from the point of cancellation? Halifax mortgage advisor was completely sure! 

You won’t have 28 days to change your mind. If you want the new rate you will need to pay the ERC. 

Not the case - they told me this and this appears on their website 

• What can I do if I don’t want my new fixed rate product to start?expandable section

  If you have arranged to switch to a new fixed rate product and the new rate hasn’t yet taken effect, you can contact us and tell us that you have changed your mind. If the new rate already applies, you can still change your mind as long as you tell us within 28 days of the new rate taking effect.

katkatmachine

This is the exact thing that happened to me. My new fixed rate is 5.69% and started last 01/01/2024. The 28 day window period will end this coming sunday 07/01/2024 but I managed to call Halifax yesterday 05/01/2024 to cancel my new fixed rate as they now offer better rates, we are aiming to get the 5.03% rate. Once the cancellation is finalised next week I can apply to a new rate. They will also refund the £999 product fee that I paid for 5.69% rate. However, I will be on the variable rate of 8.74% from January to February and will need to pay extra £467. I don’t mind as I will still save a lot if I move to a new better lower rate. 

Yes, I suggest contacting Halifax and cancel your fixed rates if you are still in the window period. 

Good luck. 

Rich1880

katkatmachine said:

This is the exact thing that happened to me. My new fixed rate is 5.69% and started last 01/01/2024. The 28 day window period will end this coming sunday 07/01/2024 but I managed to call Halifax yesterday 05/01/2024 to cancel my new fixed rate as they now offer better rates, we are aiming to get the 5.03% rate. Once the cancellation is finalised next week I can apply to a new rate. They will also refund the £999 product fee that I paid for 5.69% rate. However, I will be on the variable rate of 8.74% from January to February and will need to pay extra £467. I don’t mind as I will still save a lot if I move to a new better lower rate. 

Yes, I suggest contacting Halifax and cancel your fixed rates if you are still in the window period. 

Good luck. 

Thanks for your very helpful answer, just curious on one bit, why would the 28 day period have ended today? As the rate (like mine) started in the 1st - surely the 28 days would have been much later in January as it’s 28 days from when the rate took affect? I ask because my rate was booked a few months back and I have been told 28 days from when it took effect. Thanks! 

Rich1880

Rich1880 said:

katkatmachine said:

This is the exact thing that happened to me. My new fixed rate is 5.69% and started last 01/01/2024. The 28 day window period will end this coming sunday 07/01/2024 but I managed to call Halifax yesterday 05/01/2024 to cancel my new fixed rate as they now offer better rates, we are aiming to get the 5.03% rate. Once the cancellation is finalised next week I can apply to a new rate. They will also refund the £999 product fee that I paid for 5.69% rate. However, I will be on the variable rate of 8.74% from January to February and will need to pay extra £467. I don’t mind as I will still save a lot if I move to a new better lower rate. 

Yes, I suggest contacting Halifax and cancel your fixed rates if you are still in the window period. 

Good luck. 

Thanks for your very helpful answer, just curious on one bit, why would the 28 day period have ended today? As the rate (like mine) started in the 1st - surely the 28 days would have been much later in January as it’s 28 days from when the rate took affect? I ask because my rate was booked a few months back and I have been told 28 days from when it took effect. Thanks! 

Update - just been advised the 28days is from when the completion letter is dated - 5th December was mine (although don’t recall it ever arriving in the post) so my 28 days ran out on the 2nd Jan. Do think what they have on their website is misleading and have told them that. ‘Taking effect’ suggests the date it actually takes effect not the notice of it taking effect. 

katkatmachine

Rich1880 said: 

Thanks for your very helpful answer, just curious on one bit, why would the 28 day period have ended today? As the rate (like mine) started in the 1st - surely the 28 days would have been much later in January as it’s 28 days from when the rate took affect? I ask because my rate was booked a few months back and I have been told 28 days from when it took effect. Thanks! 

 

I received a letter confirming the completion of my mortgage 10 December so I had 28 days from that day to cancel. Good thing that I read the news that Halifax dropped the rates last 4 January so I still had time.