Nationwide or Halifax? Any tricks up their sleeves?

hobbesandco

Hi all,

My 2 yr. variable rate with the Cooperative Bank is almost up. I would like to remortgage with either Halifax or Nationwide. They're both offering 2 year discount tracker for 4.39%. Because of costs (valuation fees, arrangement fees), Halifax looks the cheapest at the moment.

I am interested in the lowest 'true' cost (i.e. hidden costs, nasty shocks with early release fees or deed release fees or it's a new moon on Monday fees or anything else silly). Can anyone give me their feedback on either Halifax or Nationwide. Are they reliable or as 'unethical' as the Cooperative Bank has been with me?

Anything else I should look out for while remortgaging? I've asked the relevant questions:

1. Daily interest
2. Up to 10% overpayment with no penalty
3. No penalty outside the 2 yr. period apart from the admin fee they charge when releasing the deeds (although of course this could go up to whatever ridiculous charge they can get away with)
4. I don't think their insurance is compulsory but this is something I need to check with them

Have I missed anything?

Thanks for your help.

MortgageMamma

There are no compulsory tied insurance products with either product, but obviously you will be aware you will need buildings insurance. If you look on your quotes you will see the halifax's deeds release fee is higher than nationwides, but the halifax's application fee's are lower by about £100 than nationwides. I've done true cost comparisons for both these products all week until I've had them coming out of my ears. Halifax is the cheapest (only by a small amount) but Nationwide are a far better lender by a country mile. Nationwide are also better at offering existing customers competitive deals at the end of their term than halifax.

HTH

Ian_W

Halifax deeds release fee is currently £225 compared to NW's £90, the latter having resisted the trend of other lenders to hike this charge in the last few years. When your 2yr fixed is ended Halifax current policy is to offer you a retention rate which is not as favourable as those offered to "Brand New Customers Onlee" whereas NW will let you access all their deals though you will have to pay the same arr fee as a new customer on some schemes.

HTH.

hobbesandco

Thank you for your feedback. As I said I am interested in the 'true' cost which includes the cost of having my hair turn grey if the bank isn't honest and upfront! I will have a closer look at the Nationwide mortgage and give it a serious think. Thanks guys.

silvercar

Halifax were hopeless when our deal finished.

Insisted we came in to discuss our situation. After 2 hours they concluded they would be pleased to offer us a discount of 0.01% on their standard rate!

Woby_Tide

silvercar wrote:

Halifax were hopeless when our deal finished.

Insisted we came in to discuss our situation. After 2 hours they concluded they would be pleased to offer us a discount of 0.01% on their standard rate!

To contrast that it took me a phone call and approximately 15 minutes to remortgage(as an existing borrower) with the Nationwide onto a deal that was freely available on the web to new buyers and remortgagers. Couldn't fault their process.

pingu

just to add that nationwide don't charge redemption fee if at the end of the deal you have less than 10 years on mortgage!

infobank

Nationwide is, in my opinion, the better of the two lenders in terms of fairness, honesty and overall cutomer protection.

regularsaver1

Halifax will not take your deeds if you remortgage to them - therefore the early discharge fee is currently £175 and not £225 as someone stated before

the retention products have a got better at Halifax that they were - 4.79% isn't a bad after having a discount at a new borrower (and lower fees than a new borrower)

dreamylittledream

Does depend on the size of your mortgage as well - most retention deals don't carry an arrangement fee and of course there is no redemption fee as you are reamaining with the same lender

Crispy_W

I have just left the Halifax, coincidentally for Nationwide.

One thing you might like to factor in will be the emotional and mental aguish you will experience in trying to get anything done by the Halifax.

They really are hopeless.

Good luck!