Redemption Penalties

shmol

Hi

My two year fix with the Halifax runs out on September 30th 2009 allowing me take take up a new mortgage on 1st October. I am part exchanginging with a builder and they insist on the day of exchange being the 30th September due to their financial quarters. Although I have paid every payment on time over four years (four in total due to 2 two year fixes) they insist on enforcing the early redeption penalty of £2000. Whilst I fully appreciate this is in the contract that I signed up for, it does seem unfair when I have made all payment and we are talking about 24 hours.

Has anyone any experience of avoiding these charges in similar circumstance?

Also my family has considerable savings with the Halifax and have said they could threaten to change banks if the Halifax insist on enfrorcing this rule, do you think this could help get them to change their minds?

Many Thanks for any advice

opinions4u

shmol wrote: »

My two year fix with the Halifax runs out on September 30th 2009 allowing me take take up a new mortgage on 1st October. I am part exchanginging with a builder and they insist on the day of exchange being the 30th September due to their financial quarters. Although I have paid every payment on time over four years (four in total due to 2 two year fixes) they insist on enforcing the early redeption penalty of £2000. Whilst I fully appreciate this is in the contract that I signed up for, it does seem unfair when I have made all payment and we are talking about 24 hours.

You could try two approaches.

1) Write to Halifax and explain your circumstances, making a fair plea for the fee to be waived. If you don't get a satisfactory response, ask them if they would be more friendly if you were taking your new mortgage out with Halifax.
2) Ask you solicitor to delay redemption by a day. It's slightly naughty, but would do the job!

Also my family has considerable savings with the Halifax and have said they could threaten to change banks if the Halifax insist on enfrorcing this rule, do you think this could help get them to change their minds?

I don't see the need to bring your family in to it.

shmol

Thanks for the reply, unfortunately I have already set up a new mortgage with the post office as they had a 5 year fix at 4.15% which I thought was too good to turn down.

Just doesnt seem right to charge £2000 for the matter of 24 hours when all payment have been met in a timely manner.

Like the solicitor idea!

ohmsoft

Somebody should see sense there!

I would propose to them that you pay one days interest which would effectively mean you have kept your end of the bargin by meeting the costs of mortgage for the required period. Phone them and politley ask to speak to a manager - I'm sure it's just a matter of getting someone to look at it 'off script'

shmol

Thanks Ohmsoft, will try that tomorrow