Shocked and amazed at Halifax

sammyjammy

I need to borrow a small amount of money, around £2000, for a new roof, the best option seemed to be a secured loan with my mortgage, I can do a tracker which only ties me in until August 09, I'm already tied in with mortgage to October 09 so thats fine, I don't have the most perfect credit so this seems the best way, I have the ability to overpay even more than I do now so I'm not concerned about increasing my mortgage, anyway I just looked on their website and they want a product fee and arrangement fee totalling £1000, I'm really shocked, is this a new thing for the credit crunch problems or have they always done this?

Sam

bookduck

I would try and get them to add and extra £2000 to your mortgage first, with no extra handling fees

herbiesjp

Unfortunately, arrangement fees have already been increasint pre credit crunch to these levels and beyond.

You could always ask Halifax if they have a deal with lower or no arrangement fees, as on only an extra £2000 that is a massive arrangement fee to pay - can that not offer you standard variable rate onthe extra £2k as the difference in monthly payment on £2k will be minimal

sammyjammy

Thanks guys, its madness isn't it, I'll certainly give them a call and see what they can do but on the website SVR isn't an option just trackers and fixed rates.

Sam

money_maker_3

The arrangement fee for borrowing extra is £349 and the product fee for the one you were looking at is £699, so if you took a fee free option like the SVR, then you would only have to pay £349.

garcon6

can you not borrow the money from TESCO/POST OFFICE!!!

boinging_2

sammyjammy wrote: »

I need to borrow a small amount of money, around £2000, for a new roof, the best option seemed to be a secured loan with my mortgage, I can do a tracker which only ties me in until August 09, I'm already tied in with mortgage to October 09 so thats fine, I don't have the most perfect credit so this seems the best way, I have the ability to overpay even more than I do now so I'm not concerned about increasing my mortgage, anyway I just looked on their website and they want a product fee and arrangement fee totalling £1000, I'm really shocked, is this a new thing for the credit crunch problems or have they always done this?

Sam

Would an interest free credit card not be a better option?

JayZed

boinging is right that a 0% credit card would be the best option, though I note that the OP "doesn't have the most perfect credit record". Might be worth trying that option, though.

sammyjammy

Yes SVR would be ideal but they do not offer it, you have to take tracker or fixed rate, there is no way I would be accepted for 0% or even low APR CC, have CCJ which although it will disappear for ever in a couple of months its there now and is a big block, also I cannot pay the roofer with a Credit card, Egg would never lend me money as I've had problems with them in the past so Egg Money card isn't an option either.

regularsaver1

yes they do, do SVR, they are jsut not putting the money on a product, but you will need to pay the further lending fee

sammyjammy

RS1,

Thanks for your comments, I don't disagree with what your saying however the Halifax website would indicate otherwise, you can start your application online and the only options to click on are the fixed and tracker products, I've emailed Halifax to clarify but I'm not very hopeful that you can borrow on SVR which is quite weird.

Sam