When is a fixed rate not fixed?

By THIS IS MONEY
Updated:

 

I have a Halifax fixed rate mortgage and because of recent rate rises am being asked to pay an extra £8 a month on parts of the loan that are not covered by the fixed rate. I don't understand this - I thought a fixed mortgage meant a fixed rate. TF, London.

Alison Kellington from Halifax says: Without knowing exactly what mortgage arrangement you have got it is hard to explain why part of your repayments move up and down with interest rates, but the most likely explanation is that your deal is only part fixed and the rest is either at a variable rate or discount rate (these move with interest rates just like variable rate deals). Look at your mortgage contract to find out what exactly your deal is.

If you are still flummoxed, call any helpline number given on letters we have sent you about mortgage rate rises, ask at a local branch or see the Halifax website where there is an e-mail facility so you can send us your full details and we will check your position.

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