Halifax Mortage

[Myriad2112]

Has anyone else noticed a seemingly unfair rise in Halifax mortgages? Even though the base rate has remained the same my repayments have gone up twice in the last six months which means I have to find nearly seventy pounds a month more even though my wages (like most people I suspect) have remained the same. As far as I can see, nothing has changed at all. The banks and building societys are still as greedy as ever.

[ubasses]

The problem is, most of the Banks rely on deposits coming in to lend out on Mortgages. Savings rates are now so low savers are looking elsewhere and the money is not flowing into the Banks. They then have to go to the Money Markets to borrow to lend. These rates are higher than base rate, this plus costs of running a Mortgage and their profit (as in any business) ends up being passed on to the customer.

[CheekyChops]

Why has your mortgage increased twice in 6 months? The Halifax SVR hasn't changed so even if you came off a lower fixed rate, that would only be one increase.

[Buenchico]

As Ubasses states, banks need to get people to save with them if they're to have any money to lend out (and to make a profit from). Halifax has recently been applauded by many people for increasing their savings rates:
http://www.telegraph.co.uk/finance/personalfinance/savings/10168951/Is-Halifax-0.45pc-rise-a-sign-of-a-savings-rate-turnaround.html

Once unemployment levels fall to below 7% the Bank of England will inevitably increase the base rate. Any initial changes are likely to be fairly small (e.g. from 0.5% to 0.75%) but they will almost certainly gradually creep up to more sustainable levels, such as 3% or 4%. (If Mark Carney and whichever Chancellor is in Downing Street get it wrong, and we end up with high inflation, the base rate could exceed to 17% record set in 1979). So anyone with a mortgage needs to be budgeting for substantial increases in their repayments over the coming years but savers will, at last, seem some reasonable returns upon their investments.

[factor-fiction]

Halifax, Nationwide and Bank Of Ireland did 'backtrack' on a tracker mortgage earlier this year. However there was something in the small print that allowed for this in certain circumstances.
There is a reference here, although I'm sure someone could find a better article relating specifically to Halifax
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9923196/Nationwide-SVR-mortgage-How-safe-is-Britains-biggest-tracker.html