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Arrangement fees - Halifax
Marvo434
Posts: 427 Forumite
Our fixed rate with Halifax comes to an end on 31/1/08 and I rang them today to see what new rates they were offering. All the fixed rate and tracker mortgages come with what sounds like an extortionate "arrangement fee" - in one case £1500 for a fixed rate product. Has anyone challenged this, along the lines of the bank charges consumer revenge i.e. that this cost is disproportionate to the costs of arranging a new mortgage, especially for existing customers? Anyone with specific experience of getting the Halifax to waive or reduce these charges would be great to hear from.
Secondly, any advice please about the best deals available - with the bank base rate cut today, it seems to me that trackers are the way to go, as lenders have to cut their rates, whereas with fixed rates, they do not.
Many thanks.
Secondly, any advice please about the best deals available - with the bank base rate cut today, it seems to me that trackers are the way to go, as lenders have to cut their rates, whereas with fixed rates, they do not.
Many thanks.
"If a man says something, but there is no woman to hear him, is he still wrong?"
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Comments
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If you had a £2 million mortgage the £1500 wouldn't seem like a bad deal would it ?
It's horses for courses.0 -
Ask them, in writing, for a redemption figure for your mortage. They may think you are considering moving your mortgage elsewhere, and be more open to making you a better offer - assuming they want to retain your business."You were only supposed to blow the bl**dy doors off!!"0
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Asking for a redemption figure wont make any difference at all. Halifax retainer deals are generally poor so see an IFA to see if you can to better.
As for the fee part, that fee gets you a rate that is less than the SVR. If you dont like it then look for a deal with a lower fee or no fee at all.0 -
as anyone challenged this, along the lines of the bank charges consumer revenge i.e. that this cost is disproportionate to the costs of arranging a new mortgage, especially for existing customers?
It is not disproportionate to the costs of arranging a mortgage and even if it was it doesnt matter as it is not a penalty charge. You do not have to pay this fee if you dont want to.
The high fee deals tend to suit larger mortgages as they have lower fixed rates. If you dont have a large mortgage then you should look to a deal with a smaller fee.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
You dont have to pay it, go for a higher rate if your mortgage is not huge!
They dont have to offer you a better rate. I would imagine that they dont want a lot of money to be lent at that rate anyhow!
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Ask a broker what product transfer rates they have available with the Halifax, these are normally considerably lower than those offered on Halifax's main website.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Why disproportionate?
If your daughter worked for them you would no doubt be pleased with the maternity pay, sick pay, health & safety expenditure, regulatory adherance and so on.
People seem to want everything for free now, until that is, it comes to negotiating thier own pay settlements.
Fees like this reflect the costs of doing business in the round.0 -
It may well be disproportionate - however they can set any fee they like, you are not obliged to stay with them. Go and see a broker, but get a move on as from 1st Feb you will be on SVR.US housing: it's not a bubble
Moneyweek, December 20050 -
Thank you for the posts - and I accept the distinction between this and bank charges. However, if someone can tell me how it is proportionate that an original mortgage set up two years ago that cost £499 in arrangement fees, has now gone up to £1500 in arrangement fees, I'd be interested to hear. It cannot cost over £1000 more in staff costs to administer a simple rate switch for existing customers. It seems to be to be another example of financial institutions ripping off customers."If a man says something, but there is no woman to hear him, is he still wrong?"0
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