Halifax Mortgage account fee MAF001

tours

Hi, New to site; I have looked at an old forum but still unclear regarding the above. have a mortgage with Halifax -- paid a Product fee of 499; being charged a Mortgage account fee of 245 per annum for the last 3 years -- is this correct?
any clarification or help would be appreciated
thanks

betmunch

Without seeing your paperwork I cant be sure, but that looks correct to me.

The account fee is actually £295 these days with Halifax

kingstreet

It wasn't £245 per annum.

You are paying off the MAF on a capital repayment basis, interest-free over the term of the mortgage.

dunstonh

The statements tend to show what the exit charge would be. However, it is only charged on redemption. Not every year.

tours

thanks for the responses to date; So just to be clear, this is a "legitimate" administration fee charged annually on a interest only mortgage. am I correct.
thanks

dunstonh

thanks for the responses to date; So just to be clear, this is a "legitimate" administration fee charged annually on a interest only mortgage. am I correct.

It doesnt sound like anything that is normally charged annually. Just on redemption. However, as said, the statements do typically show it in the redemption figure. So, it would appear on each statement but is only paid if you redeem the mortgage.

Alternatively, it is the up front fees added to the mortgage and paid over a shorter term. Its difficult to say which from what you have said. Can you tell us how it appears in the statement?

Contemptuous

MAF = Mortgage Account Fee.

Covers the setting up, routine maintenance, and closing down of your mortgage and is repaid over the term of the mortgage. You are not charged interest on this fee.

So, yes, entirely legitimate. It would have been on your documentation when you took out the mortgage. It isn't charged annually - the figure should be coming down each year.