Help with product transfer options

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13

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  • Skint2019
    Skint2019 Posts: 26 Forumite
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    Sorry and yes you are right, no product fees but they don’t give any other options, they don’t give an option with a fee
  • haras_nosirrah
    haras_nosirrah Posts: 2,208 Forumite
    edited 11 December 2019 at 7:21PM
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    the 2.59% is a 5 year fix
    there is a 2.18% 5 year with a £999 fee which is £1300 cheaper over 5 years even factoring in a £999 fee

    1.75% is available elsewhere but it depends on your circumstances as to whether it is doable to switch

    As I say a lot of brokers don't charge for product transfers and it still isn't affordability based as you are an existing client of halifax so if halifax aren't offering the cheaper product to you direct then go via a broker.
    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.
  • Skint2019
    Skint2019 Posts: 26 Forumite
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    Thankyou so much for this and apologies OP, don’t mean to hijack. I had no idea this could be done I.e product switch through a broker without all the checks involved in a new application. We did call the Halifax and were told these were the rates available and that was that. Basically take it or leave it and the 2.59 available in my account is definitely only a 3 year too.
  • haras_nosirrah
    haras_nosirrah Posts: 2,208 Forumite
    edited 11 December 2019 at 7:38PM
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    the 3 and 5 year fee free are both at 2.59%
    the broker 3 year with the fee is 2.09%
    there is also a 2 year at 1.95%
    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.
  • Retired_Mortgage_Adviser
    Retired_Mortgage_Adviser Posts: 590 Forumite
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    I'd second what has been said and recommend that you consult a broker and check out your product-transfer options.

    Either use a fee-free broker or plenty of fee-charging brokers waive it for a product transfer so make sure you don't pay any broker fee.
    Skint2019 wrote: »
    Thankyou so much for this and apologies OP, don’t mean to hijack. I had no idea this could be done I.e product switch through a broker without all the checks involved in a new application. We did call the Halifax and were told these were the rates available and that was that. Basically take it or leave it and the 2.59 available in my account is definitely only a 3 year too.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    Another issue with Halifax is they penalise you as your mortgage gets smaller.the rates go up as you go below £250k then £100k

    They may have good rates for new business but if you get trapped it is not so good.
  • pyrex
    pyrex Posts: 20 Forumite
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    I did some more calculations and it looks like I'd need to remortgage for 3 years at 1.67% including a £1,200 product/broker fee to beat the 1.75% Halifax deal.



    This assumes I fix for 2 years now at 1.64% which is one of the 3 options I originally listed.



    Getting your crystal ball out, is that rate achievable in two years?
  • millwalls
    millwalls Posts: 38 Forumite
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    edited 12 December 2019 at 4:12PM
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    Who knows?! :)

    Scenario 1 - freed from Brexit paralysis, the British economy takes off in 2020 and London becomes a Singapore-on-Thames. The BoE gradually ramps up interest rates over the next two years.

    Scenario 2 - trade talks with the EU break down leaving the UK facing a no-deal exit and continued uncertainty, the economy falls in to recession. The BoE cuts interest rates further.

    Or somewhere in between.

    Personally, I would take the shortest fix available and then remortgage/switch to the best product available at the time in 2 years. But that's just me.
    pyrex wrote: »
    This assumes I fix for 2 years now at 1.64% which is one of the 3 options I originally listed.

    Getting your crystal ball out, is that rate achievable in two years?
  • pyrex
    pyrex Posts: 20 Forumite
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    edited 12 December 2019 at 4:34PM
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    Thanks for your advice. I spoke to my broker and he said something very similar but I ended up going with the 5 year fix.



    My family is growing and while money isn't an issue, between my wife is no longer working and my own volatility as a consultant/contractor (at least in the eyes of a lender), I value the stability. I also won't have to open more threads about my indecision in 2 years. It should be a good learning experience.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    pyrex wrote: »
    Thanks for your advice. I spoke to my broker and he said something very similar but I ended up going with the 5 year fix.



    My family is growing and while money isn't an issue, between my wife is no longer working and my own volatility as a consultant/contractor (at least in the eyes of a lender), I value the stability. I also won't have to open more threads about my indecision in 2 years. It should be a good learning experience.

    Sounds like you have made a good choice. At the end of the day the only person who can decide on your attitude to risk is yourself.
    When you do the mortgage next time make sure you get opinion / do some research on the lenders existing customer deals. Its all good taking the top deal but you dont want to get stuck with a lender who's business model is to charge existing clients more. You never know when circumstances change
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