halifax are scrapping exit fee.. whoo!! whoo!!

grade15

like what the subjects states..
http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=422897&in_page_id=8&ct=5

lets all :j:j:j

MORPH3US

Is this for new mortgages taken out, or will it apply to my mum and dads mortgage that was taken out 24 years ago and will be paid off this year?

M

grade15

HBOS, the group that combines Halifax and Bank of Scotland, announced that customers who repaid their mortgage or switched to another lender would no longer have to pay a fee.

Noz

fair play to HBOS

KTF

Does this apply to people who sign up from today or anyone who wants to leave because my mortgage completed with them last week and the paperwork mentions the current £225 MEAF.

cattie

Alongside HBOS, other lenders have said they will scrap exit fees, but most have not revealed their decisions yet. Those who will no longer charge customers for leaving are Cheltenham & Gloucester, Northern Rock, Standard Life, and the Royal Bank of Scotland Group, including NatWest.

MarkyMarkD

It only applies to new borrowers with offers issued from today onwards, so I don't know why you are celebrating.

It makes no difference to existing borrowers.

But Morpheus's parents probably wouldn't be paying anything at all in any case if they are holding their mortgage to the end of its natural term. Even if Halifax charged them the originally quoted MEAF, it would probably only be £15 or something daft!

KTF

MarkyMarkD wrote: »

It only applies to new borrowers with offers issued from today onwards, so I don't know why you are celebrating.

Balls I thought that might be the case.

MarkyMarkD

It's the exact reverse of the FSA ruling on MEAFs and makes sense if you think about it.

Each mortgage contract has its own MEAF attached and those taken out before today will have an MEAF due. Those offered after today won't.

No reason why it should apply retrospectively.

Presumably Halifax and the other lenders who have made similar announcements this month will increase their up-front fees (or rates) to compensate.

It all works out the same in the end.

TwelfthMan

MarkyMarkD wrote: »

It's the exact reverse of the FSA ruling on MEAFs and makes sense if you think about it.

Each mortgage contract has its own MEAF attached and those taken out before today will have an MEAF due. Those offered after today won't.

No reason why it should apply retrospectively.

Presumably Halifax and the other lenders who have made similar announcements this month will increase their up-front fees (or rates) to compensate.

It all works out the same in the end.

Exactly.

YBS scrapped the £199 Redemption Administration Fee from tomorrow. However, they have introduced a new £199 "Mortgage Fee" which is added at the time of completion. However, customers do not have to pay this fee until redemption. Look forward to explaining this one to customers!!

MarkyMarkD

Yes, what a useful job the FSA have done by investigating this. :S

The only up-side for customers is that the amount is definitely fixed up-front.

But the overall cost to the customer hasn't changed.