Hi Phil

I am afraid that it doesn't work like that. The Halifax have set a collar to ensure rates do not go any lower - and they maintain a healthy differential with the bank of England rate (in your case 3% above the Bank of England rate). However, if rates go up - they will let the rate rise accordingly - maintaining the differential. So I would imagine as soon as the bank of England put rates up, so will the Halifax.

Hi,

I'm currently on the halifax standard variable rate (3.5%), which is at a collar (so won't go any lower). I realise that the Bank of England rate will go up eventually, however I am unsure what happens to this collar rate? Would the halifax (and other similar banks) keep it at 3.5% until the bank of england rate gets close? e.g. when it reaches 1.5% or 2% etc....then increasing the standard variable rate inline?

Hope this makes sense.

Phil