Halifax arrangement fees

cosmo_white

Hello. New to chat forums, but wanted to let off steam and find some advice. My aged parents have come to the end of their mortgage scheme with the Halifax and been offered the choice of any current product - sounds great so far. The schemes on offer aren't amazing value (5.85%5 fix for 2 years) and have an arrangment fee. How can a bank justify charging an existing customer £399 to change product at the end of their term ? There's no application to deal with, valuation to instruct, credit history to check - in fact there doesn't seem to anything much to do admin wise. The alternative is a move to standard variable rate at a whopping 7%? Is it worth them appealing to the Halifax or should they up sticks, pay their redmeption charge and find something more competitive ?

regularsaver1

sounds they they are on the Retirement Home Plan scheme?

there is an option without an arrangement fee, but it is not a fixed rate - it is a term tracker instead

all lenders charge fees when taking some of their new rates, so halifax is not alone

The £399 is not an admin fee. it is a product fee - you get the 5.85% if you pay the fee