Need Help - Halifax redemption penalty

desidesign2003

Hi Guys
I need urgent help...

I am a Halifax mortage customer for last 4+ years and on the fixed rate for last 3 years. My current fixed rate finishes in Feb 2007. In July 2006 when i asked Halifax to give me some more money so that i can buy new house, they couldn't meet my needs so i went to Northern Rock and sorted my new mortage. I am in the middle of exchanging contracts. And i have to pay 1000 ponds The early redemption penalty on my Halifax mortgage which expires in Feb 2007.

As i am loyal customer to halifax, and they couldn't provide me extra money for my need, i am finding very dificult to give away 1000 pounds in penalty.. is there any way i can get away with it... any pointer, suggestions, would be appriciated...

Thanks

UK007BullDog

no not really, as you are breaking the contract early.

They must have had their resons for not being able to help you. either because of the Loan to Value, the income etc.

regularsaver1

No - you are choosing to leave before the fixed rate ends so you have to pay the penalty regardless of whther they could help you on new mortgage or not - as all mortgages are subject to application

I agree with UK007BullDog - Halifax use an affordability model and loan a maximum of 97% loan to value (can differ) - Northern Rock use a different model and LTV

Robert_Sterling

As you are saving money by having your mortgage with Northern Rock you can use some of the saving to pay the penalty.
If, on the other hand, you are not saving enough at the Northern Rock then you should have stayed with the Halifax until the penalty period expired.