Halifax Early Redemption Charge

dbarcl10

I wonder if anyone can help me...

My partner and I had a mortgage with Halifax and we were in a Fixed Rate. We decided to sell our property and we were lucky enough to sell quicker than what we planned so we had to move in with my parents for a few months whilst our new house was being built. We have always had our mortgages with Halifax and as our new mortgage was always with Halifax, the early redemption charge was always waived. However because there was a gap between these two mortgages, we were told we would have to pay the ERC and then it would be refunded as we were staying with the same company (as long as the new product was taken within 6 months of ending the previous one), which was fine so we paid the £5k. Now we have heard that the window is actually 3 months and not 6, does anyone know if this is true? We have budgeted to get the ERC back and if we dont we will be in severe hardship when we move. Does anyone know if it is a 6 months or 3 month window that you can claim it back?

All answers will be gratefully recieved

Comyface

I'm pretty sure it was reduced from six to three months a while back. Sorry.

dbarcl10

If we were told it was 6 months (and paid it) when the window was actually 6 months, surely we would be entitled to it?

Cheers

Comyface

Possibly. But when I said 'a while back' I meant longer than six months IYSWIM. Sorry I can't remember exactly when it changed, but it's possible it was more than a year ago.

In which case, you may have cause for complaint if you've been given incorrect information by the staff member (and you do make a new application within six months).

dbarcl10

Cheers mate

opinions4u

dbarcl10 wrote: »

However because there was a gap between these two mortgages, we were told we would have to pay the ERC and then it would be refunded as we were staying with the same company (as long as the new product was taken within 6 months of ending the previous one), which was fine so we paid the £5k. Now we have heard that the window is actually 3 months and not 6, does anyone know if this is true?

3 rings a bell with me. Ask an in branch mortgage adviser to get the details up on the screen in their online underwriting manual.

We have budgeted to get the ERC back and if we dont we will be in severe hardship when we move. Does anyone know if it is a 6 months or 3 month window that you can claim it back?

I suspect your mortgage T&Cs will not make any allowance for this, so contractually there is probably no right to anything.

If the organisation has a 3 month concession and yet you have been told it is 6 then you either (a) need this in writing or (b) need the specific employee who gave you the wrong information to hold their hands up and admit this.

Without either of these outcomes you don't have a leg to stand on and are totally reliant on the goodwill of the lender.

Note for other readers: Always get the implications of this sort of situation in writing from the lender. Especially if your T&Cs or other documentation don't have the detail in.

dbarcl10

Thanks for all your replies - I'm very pleased (and surprised) to say that our early redemption charge was repaid in full after just one quick and painless phone call.

Very surprised, but very grateful to Halifax for a change