Remortgaging From Halifax

Why Do People Remortgage From Halifax?

There are several compelling reasons why Halifax customers choose to remortgage with a different lender rather than accepting a product transfer or staying on the SVR:

• Escaping the SVR — Halifax's SVR of approximately 6.99% is significantly higher than the best fixed and tracker rates available on the open market. On a typical £200,000 mortgage, the difference between the SVR and a competitive fixed rate could amount to several hundred pounds each month.
• Limited product transfer options — While Halifax does offer existing customers the ability to switch to a new deal without a full remortgage application, these retention products are not always the most competitive. Comparing them against the wider market often reveals better value elsewhere.
• Changing circumstances — If your income has increased, your property has risen in value, or your credit profile has improved since you first took out your Halifax mortgage, you may now qualify for significantly better rates with other lenders.
• Desire for different features — Other lenders may offer features that Halifax does not, such as more generous overpayment allowances, offset mortgage facilities, or cashback incentives that suit your financial goals.

It is worth noting that Halifax, as part of the Lloyds Banking Group, shares certain underwriting criteria with its sister brands. If you have been declined for a product transfer with Halifax, it does not necessarily mean you will face the same outcome with lenders outside the group.

Halifax SVR and Current Rate Environment

Halifax's standard variable rate currently stands at around 6.99%, which is broadly in line with the SVRs charged by its Lloyds Banking Group siblings, Lloyds Bank and Scottish Widows Bank. This rate can change at any time at the lender's discretion, and historically it has tended to move in response to changes in the Bank of England base rate, although not always by the same amount or at the same time.

What does the SVR mean for your payments?

To put the SVR into context, consider a £200,000 repayment mortgage with 20 years remaining. At Halifax's SVR of 6.99%, your monthly payment would be approximately £1,548. If you were to remortgage to a competitive fixed rate of, say, 4.5%, that same mortgage would cost around £1,265 per month — a saving of roughly £283 each month, or nearly £3,400 over a year.

How does Halifax compare?

Halifax's SVR sits roughly in the middle of the range among major UK lenders. Some banks, such as HSBC, have a slightly lower SVR, while others like NatWest and Royal Bank of Scotland charge a higher rate. However, the key point is that virtually all SVRs are considerably more expensive than the best deals available to remortgage customers, making it worthwhile to explore your options regardless of which lender you are currently with.

How to Remortgage From Halifax

Remortgaging away from Halifax follows a straightforward process, and in most cases it can be completed within four to eight weeks. Here is what to expect:

• Check your current deal — Review your existing Halifax mortgage to confirm when your current rate ends and whether any early repayment charges (ERCs) apply. Halifax typically charges ERCs during the initial deal period, and these can range from 1% to 5% of the outstanding balance depending on your product.
• Gather your documents — You will need proof of income, recent bank statements, identification, and details of your current mortgage including the outstanding balance and remaining term.
• Get a decision in principle — Apply for a decision in principle with your chosen new lender. This gives you an indication of how much they are willing to lend and at what rate, without committing you to anything.
• Instruct a solicitor — Remortgaging requires legal work to transfer the mortgage deed from Halifax to your new lender. Many lenders offer free legal services and a free valuation as part of their remortgage package.
• Completion — Once the valuation and legal work are complete, your new lender will pay off your Halifax mortgage and your new deal begins. Halifax will confirm the final redemption figure, which includes any outstanding interest up to the completion date.

You can start the remortgage process up to six months before your current Halifax deal ends, allowing you to lock in a competitive rate without triggering any early repayment charges.

Things to Check Before Switching From Halifax

Before you commit to remortgaging away from Halifax, there are several important factors to consider to ensure the switch genuinely works in your favour:

Early repayment charges

Halifax's ERCs vary depending on the product you originally chose. Fixed rate deals typically carry ERCs that reduce each year of the initial period. For example, a five-year fix might start with a 5% ERC in the first year, reducing by 1% each subsequent year. Calculate the ERC amount against the potential savings from a new deal to determine whether it makes financial sense to switch early or wait until the penalty-free window.

Exit fees

In addition to any ERC, Halifax may charge an administration fee when you redeem your mortgage in full. This is sometimes referred to as a deeds release fee or mortgage exit fee. The amount is typically modest, but it should be factored into your calculations.

Cashback or incentives received

If you received cashback or other incentives when you took out your Halifax mortgage, check the terms and conditions. Some incentives are repayable if you remortgage within a certain period.

Portable mortgage benefits

Halifax mortgages are often portable, meaning you can transfer the deal to a new property if you move. If you are considering moving home in the near future, it may be worth weighing up the benefits of porting your existing deal against the advantages of remortgaging now.

Product transfer comparison

Before looking elsewhere, check what Halifax is offering as a product transfer. While these deals may not always be the most competitive, they have the advantage of requiring no solicitor, no valuation, and no affordability assessment, which can make the process significantly faster and simpler.

Why Using a Broker Helps When Leaving Halifax

While it is entirely possible to remortgage from Halifax on your own by approaching new lenders directly, using an independent mortgage broker can offer significant advantages that often result in a better outcome.

Whole-of-market access

A good mortgage broker has access to deals from dozens or even hundreds of lenders, including some that are not available directly to consumers. This means they can compare Halifax's product transfer offers against the full range of options on the market and identify the deal that offers the best value for your specific situation.

Understanding your circumstances

If your financial situation has changed since you first took out your Halifax mortgage — perhaps you have become self-employed, changed jobs, or experienced changes in your credit history — a broker can guide you towards lenders whose criteria best match your current circumstances. Different lenders assess income, expenditure, and credit history in different ways, and a broker's knowledge of these nuances can make the difference between acceptance and rejection.

Saving time and effort

Rather than researching rates, comparing products, and navigating multiple application processes yourself, a broker handles the legwork on your behalf. They will also liaise with your solicitor and the new lender throughout the process, keeping everything on track and dealing with any issues that arise.

No cost to you

Many mortgage brokers do not charge the borrower a fee, instead receiving a commission from the lender when the mortgage completes. This means you can benefit from professional advice and whole-of-market access without any out-of-pocket cost.