Early Repayment Charge - Arrghhh

gowen

**grabbed my tin hat**

I was just having a rant.

I sat down with 4 alternative lenders who all gave me DIP based on exact same information I gave Halifax...only Halifax said no.

I know it was highly unlikely that Halifax would agree to waiver the ERP...had a call today saying that they won't.

I'm fully aware I'm contractually obliged to pay this as it was what I signed up to...just left a bitter taste in my mouth that's all.

Had offer from Principality for anyone interested...all through in 3 weeks. No issues. They asked for bank statements, proof of salary and bonus' and that was about it. Would recommend!

Apologies for those who felt I was saying Halifax are in the wrong and are acting beyond the terms of the agreement...I wasn't.

ACG

I like principality, my own mortgage is with them but im surprised they would lend more than halifax (not that im doubting you).

I tried not to comment on the ERCs but me being me I cant help it... All im going to say is we have a different opinion. If your annoyed at anyone it should be yourself for choosing to tie in for so long and then change your mind.

andyfromotley

Your only hope (and as has been pointed out its slim) is to appeal the decision not to lend you the amount you need. It does seem odd that you are getting DIPs willy nilly but not one from your current lender. Appeal, send em all the paperwork and the DIP's from other lenders and see if you have any luck?

(you are wasting your time trying to get the ERC waived, the decision you need to challenge is not to lend to you)

Obviously all lenders have their own criteria but it seems odd that their willingness to lend seems at odds with other Mainstream lenders. (i assume your other DIP's are from mainstream lenders.?)

Worth doing on the very slim chance that you may be able to avoid switching lender and pay the ERC?!

gowen

Thanks for your responses...

ACG - I don't disagree...like you I was surprised that as my existing lender they wouldn't give me a DIP even...I completely agree it's the agreement I made when signing up to the mortgage. Just annoying really..

Andy - Yes I've had 4 seperate DIP's...3 from mainstream lenders and another from a local Building Society. Halifax have confirmed now that they aren't willing to waiver the ERC...as expected. Anyway I am going with Principality and I move to my new home (fingers crossed nothing goes wrong!) in under 4 weeks time...just around £2k worse off than would have liked! Nevermind!

Thanks all.

kempstar

One thing you can do to slightly soften the blow. Can you make overpayments on your mortgage? Most let you make up to 10% a calendar year. If you can do that first, you are effectively reducing the ERC by 10% as well. Even better, some lenders years are April to March, so you could pay 10% now, then another 10% in April. We are in a similar situation and just trying to make the best of it!

kempstar

Also, is the interest rate on the new mortgage lower than your halifax one? Hopefully it is. Then you can also add the difference in interest cost on the current mortgage amount between the two products to soften the blow further.

JimmyTheWig

ACG wrote: »

I tried not to comment on the ERCs but me being me I cant help it... All im going to say is we have a different opinion. If your annoyed at anyone it should be yourself for choosing to tie in for so long and then change your mind.

I see where the OP is coming from on this.
They're not moaning about the ERCs when they want to get out of a fixed rate. They don't even _want_ to leave Halifax in the first place.

I accept that the fact of the matter is that they could stay where they are and stay with Halifax and not pay the ERCs.
I accept the fact that porting is subject to normal lending criteria.
But when the consensus is that they should meet normal lending criteria then it _feels like_ it is Halifax who are changing their minds.

JimmyTheWig

kempstar wrote: »

One thing you can do to slightly soften the blow. Can you make overpayments on your mortgage? Most let you make up to 10% a calendar year. If you can do that first, you are effectively reducing the ERC by 10% as well. Even better, some lenders years are April to March, so you could pay 10% now, then another 10% in April. We are in a similar situation and just trying to make the best of it!

Are the ERCs not normally based on the balance at the start of the year? If so, this wouldn't work.
(Unless the year does run April to March and any paid off before April won't be hit.)