£100 mortgage redemption fee - do I have to pay?

[RomySchneider]

I took out a mortgage with Halifax 3 years ago for 20 years but only discounted for 3 years after which the interest goes to the highest standard rate.
I paid it off exactly after the 3 years by which time I would have to remortgage to get a decent interest rate. They are now telling me I have to pay a redemption fee of £100.
While that is not a huge amount I still think it is their normal business to close a mortgage account. They are just trying to money grab where they can as banks usually do.
Has anyone got any idea whether I can refuse to pay or have I got to bite the bullet?
Thanks in advance!

There's normally a redemption fee to pay. I think it covers sorting out the deeds etc and either sending them to you (if the mortgage is completely paid off) or to your new lender.

You could have a go at refusing to pay it but I'm not sure you'd get far. It's quite a standard thing.

Look at Martin's money tips on the internet.

Agree that it is a standard thing - our fee is £250.

Standard, and actually relatively small - a redemption fee will be stated in your small print - although you may get a further reduction if you protest a bit. If you try to go elsewhere for a better deal they may withhold the deeds until you pay up.

I am not going elsewhere, I don't think they have any deeds that they could withheld but not sure...

They have to hold the deeds to the house if they lend you the money. It's the security. If you redeem the mortgage, then you own the house outright and you should then hold the deeds. Most people then put them in a store safe type facility at a bank or your lender will keep them on for an annual fee.

If you look at your mortgage offer it will usually state on there what the fee is when you redeem your mortgage. £100 is cheap in comparison. Woolwich charged me £295 last year when I remortgaged.