Standard deal

By THIS IS MONEY
Updated:

 

I am 34, unemployed, with a Halifax fixed rate mortage of 5.65% which returns to its standard variable rate in April 2004. I have a redundancy package and savings of approx £35,000. All the literature I've read says it is almost impossible to remortgage to a lower rate. Is this true or can I speak with Halifax to see if they will 'set a deal' rate? JD, London.

David Hollingworth at mortgage broker London & Country says: When a lender considers a new mortgage application they check whether you can afford the monthly payments by looking at your income, so without a source of income you will be unable to remortgage to another lender.

So talk to Halifax when your fixed rate comes to an end in April, as you will be locked in with redemption penalties until that point.

Halifax has a range of deals for existing borrowers who are not moving home - these rates are not as keen as those available to new customers but are better than the standard variable rate that your mortgage will revert to.

If you find in the future that you are struggling to pay the mortgage contact Halifax and explain the problem - they should approach any problems sympathetically.

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