Abacus Daily Debt News

Home movers penalised by Halifax?

Those planning to move house and who hold a mortgage with Halifax may soon find themselves facing debt problems, as the lender is forcing some customers to switch from cheaper deals.

Borrowers who have taken out the bank’s standard variable rate (SVR) mortgage will not be able to continue with this agreement should they relocate, instead having to transfer to fixed and tracker accounts, Money Mail reports.

The news source noted that this can mean that hundreds of pounds are added to monthly repayments.

And mortgage expert at Moneyfacts.co.uk Darren Cook observed that, a few years ago when SVRs were costly, no-one would have wanted to transfer them to a new home.

"Now, if your SVR is under four per cent - the average is 4.63 per cent - it can make sense to keep it," he said.

However, mortgages themselves are becoming more affordable, recent figures from Woolwich of Barclays have indicated, with the average monthly payment being £497, a drop from the £607 seen in December 2008.

By Sarah Adie