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

mortgage-nerd

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.

I agree, watch out for increased up front fees to compensate, especially for fixed rate deals (which might not even be the most competitive option anymore given that the base rate is tipped to reach 6% soon).

MarkyMarkD

Fixed rates are not better or worse value, just because of the way rates are expected to move.

It's precisely because of the way rates are expected to move that fixed rates are what they are.

What you mean is that fixed rates might not be cheaper at the outset than variable rates. But that point has already come and been with us for much of this year.

Variable rates are lower than fixed, because fixed rates have priced in a rate rise or two over the next year.

grade15

in the report, its states
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. Doesn't the sentence sound like its in the past tense???

KTF

I cant find the press release about this on the HBOS site (http://www.hbosplc.com/media/press_releases.asp). Maybe its worth giving them a call to clarify.

Edit:

Yesterday the biggest mortgage lender, Halifax-Bank of Scotland, said it would be scrapping the exit fees on all the new mortgages it sells.

From: http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=422925&in_page_id=8&ito=1565

MarkyMarkD

grade15 - bad English in the article, that's all. The Thisismoney wording is correct - it's for mortgages offered from 31 July and doesn't affect previous accounts.

Obviously if you switch mortgage products from one that has an MEAF to one which doesn't, you'd save the fee. Worth bearing in mind. But Halifax's switcher products don't tend to be very good recently.