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Mortgage repayment fee - is this right?

(13 Posts)

We've just come to the end of a 5 year fixed rate with Halifax and are swopping to Nationwide. We have a repayment admin fee of £75 to pay, a deeds dispatch fee of £50 and then a whopping repayment fee of £600! Does this sound right???

I never remember this been spoken about when we got the mortgage - I new there would be an early penalty fee if we left while still in the 5 year period but not this

cluelessnchaos Sat 19-Jul-08 12:04:09

We always switch mortgages, and usually get hit by the new product fee, solicitors fees, new survey fee, but I am sure that we we have never had to pay a big repayment fee like that, have you asked the halifax what is the best deal they will offer you to stay sometimes it ends up being cheaper to stay on a slihtly worse deal so you dont have to pay the fees.

Would be able to not go with the Nationwide right at the last minute if we chose to stay do you think? All the paperwork is in place and we have signed stuff, though not paid yet or been sent a bill?

This is more stressful than moving house, I feel ill with it.

Helennn Sat 19-Jul-08 13:28:38

Do you not have the paperwork from when you started the 5 year fix? (Don't mean to sound preachy!)

I have just looked mine out as we are going through the same and it is all laid out very clearly in a letter titled Product Transfer Offer. I can't see any reason why you would have to pay a £600 fee, other than it being a mistake. I'm sure a phone-call would sort it out.

cluelessnchaos Sat 19-Jul-08 13:53:58

Dont know at what stage you can change your mind but wont take long to find out, usually the current lender will do anything to keep your business, have you got a financial advisor?

ivykaty44 Sat 19-Jul-08 14:01:32

Yes the company have put these figure on - BUT you can tell them they have to justify the charge and or you can reclaim it. Better to sort it out now if you can - I think you will find more expert advice on the martinlewis money websote forums.

I had a problem with changing mine and stated that they had changed the price over the years we had been with them and that although I had agreed to the original price (at the start of the 5 years) I would not agree to the price now (they had upped it by 100% and I was over a barel so to speak). Upshot was I made as big a fuss as I could and they dropped all charges in the end just to shut me up grin They wanted in the region of £500. It took me more than a phone call and a couple of letters that I got of the martinlewis site beofre they gave in.

notcitrus Sat 19-Jul-08 14:06:25

Was there any tie-in to the Halifax deal beyond the five years?
Or more likely, can you double check the switch is definitely after the end of the five years, not a day or two early?

You might have to pay an arrangement fee with Nationwide but IME they ask for that before they approve you for the mortgage, so there may not be one (or they could be planning to just add it to the new mortgage, in which case you might have to pay).

Phone both of them - it should be easy to sort out. And the mortgage teams tend not to keep you on hold for ages - they want to talk to you!

ivykaty44 Sat 19-Jul-08 14:06:43

here

noddyholder Sat 19-Jul-08 14:13:24

You need to check the small print in case you have to pay a fee to leave the mortgage before the end as you may have had a prefernetial rate for the 5 years on the condition that when it is up you stay with them but go onto another product

TheFallenMadonna Sat 19-Jul-08 14:15:02

Sounds high for a simple changeover.

Agree it could be an extended tie-in.

Phone and ask.

Phew, panic over - I phoned them and the £600 fee would be payable if we left now, not in a few weeks time when the 5 years are up! Thanks for the advice though.

cluelessnchaos Sat 19-Jul-08 19:15:04

oh, I remember that happening to us now, sorry I didnt remember earlier

Just glad they were open on a Saturday - I thought at first I wouldn't be able to talk to anyone until Monday and would have spent the whole weekend worried sick.

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