remortgage fees - am I missing anything?

lexia

Can anyone please tell me/confirm if I'm missing something with re to fees needed for a remortgage for a leasehold flat? Thank you.

• broker fee
• valuation & legals (hopefully £0 - if the broker can find one of those deals offering free legals and valuation. Are these 'free legals' offerings really entirely free? Or, are there any hidden charges?
• mortgage account fee
• mortgage product fee (hopefully £0)

kingstreet

Closing/deeds release fee for your current mortgage?

Have you considered and discounted customer retention products from your existing lender?

lexia

Thanks, not sure if there are any deeds release fees, but I don't think there are exit fees, the mortgage paperwork doesn't mention any.

Yes, I have checked. My current lender, Halifax, won't let me switch to a new deal online - I can only switch over the phone with full affordability checks and all the paperwork that's needed for a new mortgage - so because they are forcing me to do that, I decided to look for better rates elsewhere (if I can get them).

kingstreet

The balance of the Mortgage Account Fee will be included in your redemption figure.

There should be a sub account covering this on your annual mortgage statement.

dimbo61

Different lenders have different fees and some deals are fee free while some charge fees.
Find it strange that you cannot simply find a new deal with Halifax.
Are you borrowing more ? Changing the term ?

lexia

Thanks, I think it's £245. The balance isn't mentioned in my annual statement although there is one line item that says MAF and no interest being charged on it.

Are those "free legals" for remortgages really free though? Or is there any admin charge or any other hidden charge in there?

kingstreet

If it's interest-only or lending into retirement, Halifax keeps control by not permitting online product transfers.

Otherwise a few odd cases haven't been switched over to the 10/ system for some reason and still have A/ roll numbers.

kingstreet

lexia wrote: »

Thanks, I think it's £245. The balance isn't mentioned in my annual statement although there is one line item that says MAF and no interest being charged on it.

Yes. That's the mortgage account fee.

It's interest free, but you'll still have to pay it back when you leave.

lexia

dimbo61 wrote: »

Different lenders have different fees and some deals are fee free while some charge fees.
Find it strange that you cannot simply find a new deal with Halifax.
Are you borrowing more ? Changing the term ?

kingstreet wrote: »

If it's interest-only or lending into retirement, Halifax keeps control by not permitting online product transfers.

Otherwise a few odd cases haven't been switched over to the 10/ system for some reason and still have A/ roll numbers.

I'm not borrowing more and I'm not changing the term and I'm on a repayment mortgage and not lending into retirement either.

Halifax won't let me switch online because of a problem with their software systems - they have changed their systems a couple of years ago, and some mortgage accounts have not been migrated to the new one. Mine is one of them. So to give me a new deal, I have to apply as if it were a completely new mortgage application, with all paperwork. I'm not the only one on this forum, there are plenty of threads with this issue.

Thrugelmir

lexia wrote: »

Halifax won't let me switch online because of a problem with their software systems - they have changed their systems a couple of years ago, and some mortgage accounts have not been migrated to the new one. Mine is one of them. So to give me a new deal, I have to apply as if it were a completely new mortgage application, with all paperwork. I'm not the only one on this forum, there are plenty of threads with this issue.

After Lloyds acquired HBOS in 2008. A subsequent review of HBOS's mortgage lending book found that around 35% of total lending was outside of Lloyd's own lending criteria, i.e. business they would not have underwritten. Switching product now allows LloydsHBOS an opportunity to reappraise borrowers. Though with the new EU mortgage directive and more wider general factors there could well an increase in this activity. As lenders look to protect themselves and maintain lending margins.

lexia

Thrugelmir wrote: »

After Lloyds acquired HBOS in 2008. A subsequent review of HBOS's mortgage lending book found that around 35% of total lending was outside of Lloyd's own lending criteria, i.e. business they would not have underwritten. Switching product now allows LloydsHBOS an opportunity to reappraise borrowers. Though with the new EU mortgage directive and more wider general factors there could well an increase in this activity. As lenders look to protect themselves and maintain lending margins.

Thank you, but that doesn't really apply to my case. I got my initial mortgage with Halifax in May 2012. I went direct with Halifax, not via a broker.

I don't understand why I am being treated differently with the full application and credit checks, just because of a mortgage numbering/financial software systems issue...