Another end of fixed rate question!

~Beanie~

I'm slightly worried about what will happen when my fixed rate ends in September.

It was originally a 5 year fixed at 4.89% with the Halifax and this ends Sept 08. There is £35K outstanding on a house worth somewhere around £65 - £70K.

Since taking out the mortgage I've managed to accrue £12K of credit card and other debt, one has defaulted and I'm paying it via a DCA and the others have a couple of late payments. I have no CCJ's.

Are the Halifax likely to offer me another fixed rate? I've read that they possibly won't do credit checks as I have an existing mortgage (never had any arrears or been late with payments). I realise that if I were to change lender it would be different.

I assume that if I do nothing, my mortgage will revert to the SVR or is there the possibility that Halifax will tell me to go elsewhere? If I do go onto SVR then I have worked out my repayments using the current rate and could afford them but it would obviously give me less money to throw at my debts in my quest to become debt free!

Thanks for any advice anyone can give me.

sarkin

Halifax will offer a new rate without credit scoring, but it will not be competative. If you need to debt con the they will score. You may as well get a mortgage broker to do this and check your score at the same time.

sarkin

They will not tell you to leave if you are on SVR as they will be making a fortune. Thats why lenders never call to offer a better rate. They just hope you will slide onto SVR and not leave. About 20% of the country are on SVR, they are funding the lower rates.

mpsavuk

sarkin wrote: »

Halifax will offer a new rate without credit scoring,

No chance! Peoples circumstances change as the above post proves. Halifax will very definitely re -credit score a customer remortgaging.

silvercar

mpsavuk wrote: »

No chance! Peoples circumstances change as the above post proves. Halifax will very definitely re -credit score a customer remortgaging.

Existing lenders don't usually re-credit score unless you want to increase the amount of borrowing. They have the risk, having already loaned you the amount against the property, so why would they want to credit score.

Some lenders are good at offering existing customers all available deals, others are more restrictive. No harm in asking, but we moved away from the Halifax years ago as they wouldn't offer us any deals that were significantly different from their SVR.

~Beanie~

Cheers. According to Halifax's website, I can switch 2 months before the end of my present deal without penalty so I'll leave it till about July and then contact them.

As I said, I can afford the repayments on the SVR but would rather not pay that if I can get something better!