Halifax SVR Mortgage cap increase - is it time to remortgage to a better deal?
After receiving the news that the Halifax SVR mortgage cap is to increase, customers who are sitting the on lender's standard variable rate or on products with an early repayment charge need to quickly consider their options.
For those thousands of customers who might soon be affected by the Halifax SVR mortgage cap increase, now might the time to switch and remortgage to find a better deal.
The Halifax has written letters to around forty thousand mortgage customers indicating an increase to the SVR cap from 3.0 to 3.75 per cent above the BoE base rate. This now means mortgage customers may be asked to pay 4.25 per cent for their deal.
The lender has said that the change should not affect customers repayments immediately - but it is important to note that the previous time the lender raised its cap it went on to increased its SVR only 3 months later.
The forty thousand or so customers who have received letters are not the only mortgage customers who may be affected by the cap increase. There are thousands of other Halifax mortgage customers who may also suffer due to the bank raising its cap, as the lender's SVR is the rate that most mortgages revert to at the end of the initial mortgage term.
Those Halifax borrowers with an early repayment charge on their mortgage deal are being given 3 months notice to remortgage with another lender offering a better deal.
Those who switch within the 3 month notice period will not incur the lender's early repayment charge and therefore the time to act is now.
Deal Direct are here to help those mortgage customers affected by the Halifax SVR mortgage cap increase. We are 'whole of market' brokers and as such are totally familiar with different remortgage providers lending criteria and are best placed to source you a the most competitive deal available right now.
