mortgage balance higher, possibly ERC?

drina

Hello everyone. I've just switched to a new 2-year deal with Halifax and it looks like they have charged me an ERC fee (?!) although the advisor said they would waive it if there were less than three months left on the current deal. The current mortgage balance displayed online is over £216K when it should have been £212Kish. Do they charge this ERC fee and then credit it back? Thanks.

amnblog

I think you'd better speak to them immediately.

ACG

Did you stay with halifax or go to a new lender?
If you went to a new lender i dont think they will credit it back although i dont use halifax that much so couldnt say for sure.

drina

I stayed with Halifax and did a product transfer from a 2-yr fix at 4.34% to a 2-yr fix at 2.64%. The 3-month waiver note is posted on their website but I also asked the question over the phone on Monday when I called them to do the switch - and they confirmed ERC would be waived.

Time to switch to a new deal?

Is your current Halifax mortgage deal ending? Or perhaps you’re on one of our lender variable rates and want the reassurance of a fixed rate. Whatever your situation we'll help you find the best deal for you.

• Talk to a mortgage specialist about your options
• Easy to arrange
• No legal fees to pay
• Valuation not usually required
• Early Repayment Charges waived on existing deals with 3 months or less to run
• You can start your application online, visit your local branch or give us a call.

amnblog

Your figure difference Drina is 2%

This is not a product fee

We don't need Sherlock to work out what has gone on here!

drina

PS. The KFI document that they've sent me via email on Monday shows a balance of £212Kish - which seems right - and the new deal would start 1st of April.

drina

@amnblog: I know that - that's why I suspected it would be ERC... anyways I've just emailed the lady who processed the transfer, I wrote down all her contact info on Monday.

Thank you.

drina

She's just confirmed by email that the ERC was waived... but I still need to call (just for peace of mind ).

"The early repayment charges have been waived. The online balance may not be up to date but the paperwork is the correct figures.You can call our Servicing department on 08457 273747 to clarify the balance of your mortgage."

JimmyTheWig

drina wrote: »

The current mortgage balance displayed online is over £216K when it should have been £212Kish.

Is that actually the current balance that you are looking at or the current redemption figure?
I.e. if you were to pay off your mortgage in full today it would cost you £216k because you'd have to pay ERCs on the current mortgage deal.

drina

I don't have a full view online as most Halifax clients do - I can only see the current mortgage balance (on Mon morning it was 212Kish) and number of years left on the mortgage with no other details. Apparently my mortgage is on some old Halifax system and hasn't been transferred to their current system.

drina

So I called and

"The product transfer team will look into it. And yes the ERC was added inadvertenly, it looks like... as you are within the three months I wouldn't worry, it was probably a mistake but I can't confirm 100% right now, you will get a letter to that effect. 5-7 business days".

Aaaargh!!!