Early redemption penalty.

tfn13

I understand the reason these fees are in place and that they are on a sliding scale and reduce the further you get into your agreed term.

The question I have is this:
We signed up with the Halifax for a 5 year fixed rate product. We are now in our fifth year and are moving abroad. I requested the final pay out statement and they want to charge me 2% early redemption penalty. The fee for the final year is 1% and when I questioned it was told that we are not in our final year as the product runs until June 2008 - making the deal actually 5 years and 3 months, the 3 months adding about £1000 to the redemption figure.

Can I put forward any argument for a reduction to 1% or maybe even 1.5% or have they got me over a barrel?

Any help would be appreciated. Thanks.

AndrewSmith

You can put forward an argument, no-one can stop you however they are highly unlikely to reduce the charge as it is your decision to end the mortgage within the redemption period.

They would see it that they have stuck to their side of the deal by offering you the fixed rate for the prescribed period so you should pay the full penalty due if you choose not to keep up your end of the bargain.

Mr_helpful

These fees are detailed with dates in every halifax offer. I guess you didnt read it.