NEW Mortgage Exit Fees Discussion

MarkyMarkD

triggerhappyuk wrote: »

Sorry no way to avoid, unless you can find a mortgage company willing to refund it if u switch over to them

Eh? No lender "refunds" other lenders' charges.

experts25

There is some difference for me

Optimistic1

Apologies if this is the wrong forum to post this in....

I am selling my flat - we are at the exchange stage now and hopefully will be completing by the end of this month. My next mortgage payment is due on 1st August. Do I need to pay that if say the completion takes an extra few days and doesn't complete until say 3rd August for some reason?

Reason I ask is that mortgage is interest only so obviously I am not paying anything off.

Thanks for any advice!

Courtmill

I'm purchasing a new build and am being asked to pay a £245 exit fee upfront by Halifax....

Apparently this means we don't pay interest on the amount...

Is this standard now?

dunstonh

Courtmill wrote: »

I'm purchasing a new build and am being asked to pay a £245 exit fee upfront by Halifax....

Apparently this means we don't pay interest on the amount...

Is this standard now?

Are you saying that you are paying a £245 exit charge on entry? Or do you already have a mortgage and the redemption charge is from your existing mortgage?

No lender charges redemption charges up front. Plenty charge application fees or administration fees or booking fees but they are different things (Although over the years, the entry and exit charges have tended to balance themselves out between providers with some charging more up front and less behind or vice versa).

Courtmill

Apparently we are paying the exit fee on entry yes...

beecher2

Courtmill wrote: »

I'm purchasing a new build and am being asked to pay a £245 exit fee upfront by Halifax....

Apparently this means we don't pay interest on the amount...

Is this standard now?

You don't pay interest on the exit fee since it is only charged when you exit.

They are charging you a 'Mortgage Account Fee' which supposedly replaced various fees, including the exit fee but also including the Deeds Dispatch fee and setting up fees.

Courtmill

So this fee is instead of the exit fee and covers other fees as well?

I've fallen out with my IFA recently and am fed up of asking him questions. He keeps telling us that its the exit fee.

beecher2

Courtmill wrote: »

So this fee is instead of the exit fee and covers other fees as well?

I've fallen out with my IFA recently and am fed up of asking him questions. He keeps telling us that its the exit fee.

Have a look here

http://www.halifax.co.uk/mortgages/mortgagefees.asp

You won't pay an exit fee or deeds despatch fee because you've paid this. I had to pay Halifax both when I paid off my mortgage, as my mortgage pre-dates the Mortgage Account Fee.

dunstonh

The names of the fee are largely irrelevant. What you pay in total is what matters.