The current mortgage rates Halifax offer look low but watch out for the SVR.
Although the current mortgage rates Halifax offer look low, borrowers need also to consider the lender's SVR before choosing a deal.
When a fixed or discounted period ends borrowers often switch to the lenders SVR. Consumer group Which? has warned that those with SVR mortgages may be financially squeezed once interest rates are rise.
In the past there was some confusion over the standard variable mortgage rates Halifax charged.
When the BOE cut the bank rate in 2008/2009 from 5 per cent to 0.5 per cent the Halifax, which is now part of the Lloyds Group, failed to make it clear to borrowers that under it's terms their standard variable rate could change and be increased. This meant from January 2009 over half a million home-owners paid more for the SVR than had been agreed at the start of their deal.
Having just announced a further increase to it's SVR the bank confirms that it will contact all mortgage holders, in writing to notify them of the increase prior to it coming in to effect on 01 May this year.
Halifax mortgage-holders should also remember that the mortgage rates Halifax offer are good and despite a SVR increase to 3.99 % from May, their rate at below 4 % is still low when considered on a historical basis.
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