Halifax - when is fixed rate not a fixed rate

Dudic

I am really confused. Is it possible for a rate to change on a fixed rate mortgage?
I've got a fixed rate mortgage with the Halifax until 2010 but have just received a letter which seems to indicate my payments are going to increase even though my mortgage is fixed. The letter arrived with a brochure entitled "why might my mortgage payments increase on a fixed rate". I called Halifax but they didn't really help, they just said my rate is increasing and I will get a letter in the next few weeks explaining the new payment.

Anyone any ideas what this is?

Anyone else received the same thing?

Any help appreciated!!!!

beecher

Can you dig out your original mortgage offer and check what it says? Last year's mortgage statement should also say when the fixed rate ends. What does the brochure say - I seem to vaguely remember reading something in my mortgage leaflet mentioning a situation where the payment might change, but I can't see how the rate itself can change during the fixed rate period.

payless

Few ideas

arrears capitialised

Kicked of rate for breach ? ( letting , arrears )

added insurances.

Are you sure it was 2010 ?


Fees added and taken on SVR rather than fixed ( although SVR going down, so should not be that .

I would suggest you go into a branch if concerned, or possibly even a broker- as ( with your authority) many have access to your product details

Dudic

I haven't got any arrears or additional borrowing and definitely haven't been in breach - so shouldn't be anything like that. I'm going to try and dig everything out over the weekend and maybe going into a branch armed is a good idea.

So you think this is something specific to me rather than something Halifax are doing to everybody?

Tiddler_2

Payless may have touched on the reasons but just to try and throw a bit of light on the matter, and some of it depends on when you took out your mortgage as timing of the rate change may be a factor in this.

I worked as a existing mortgage administration manager at the Halifax until 2000, and used to have to deal with lots of "complaints" on this subject - am presuming that their procedures haven't changed since then.

The Halifax reassess EVERY mortgage each time there is an interest rate change and send out a letter to every customer to advise them of the change in the base rate (so you can keep a track on what is happening with rates for when your fixed rate ends.)

If the change in your monthly payment is negligible (less than £2 I think) or you are on a Budget Plan/Annual Review schemes then you get a letter saying your payments are not affected.

If you are on a variable rate obviously your payments are likely to change.

Fixed Rate customers may not expect their payments to change - but it is their rate that is fixed and not their payments. Now why would their payments change but their rate hasn't - quite simply it because your mortgage balance has changed in some way.

This could be insurance premiums, product fees or HLC being added. Also with a 25 year mortgage, for example, you actually pay the capital back over 24 yrs 11 months as the first months payment is just interest.

So if you took out a 95% fixed rate mortgage since the last rate change and chose to add the product fee and the HLC, these fees are only taken into account on the first rate change after completion. If rates did not change for 12 months then you are then paying those fees back over 24 yrs.

Hope that makes some sense - might help if the OP states when his mortgage completed.

If it was more than a few months ago, the only thing I can think of is if he has recently had an annual insurance premium added.