Halifax interest rate calculation

[triplex]

hi, i have switched to halifax and the deal i signed up to was:

'rate of ECB +1% discounted by .55% for the first 2 years'

by my calculations, this works out at:

EBC rate of 3.25% plus 1.00% less 0.55% = 3.70%

(the new ECB rate has not yet been passed on)

however, halifax are calculating this as:

rate of ECB +1% discounted by .55% for the first 2 years = 4.25%

Which of us is right? no doubt it's the bank!

any advice appreciated!

 

[amofeeney]

obviosuly they are calculating of the new ECB rate? 3.5 % +1 = 4.5% less the .55 = 4.25

 

[bobk]

Check the loan offer again as they have both rates printed on it.
One for the first 2 years and one for the remaining term.

You should be on 0.45% above ECB and then you will revert to 1% above ECB after 2 years.

Keep in mind that the ECB rate has now risen to 3.5 since yesterday so the rates are now 3.95% and 4.5%

 

[triplex]

thanks for the replies! Halifax actually were not taking the new interest rise into account. I'll try again to get a straight answer from them!

3.95 seems right..

thanks again!