Halifax demanding ERP charge even though we have now moved

Chrishartjones

But surely we should have been made aware of this charge when we were applying for the new mortgage? If this fee is required then why wasn’t it included within the original final completion statement?

Broadyx

Chrishartjones wrote: »

But surely we should have been made aware of this charge when we were applying for the new mortgage? If this fee is required then why wasn’t it included within the original final completion statement?

it would have been unless someone (solicitor) asked for it not to be included.
it sounds like someone - broker or sols - have got confused with the policy.

kingstreet

We come across this a lot, being newbuild HTB specialists.

Some time ago, Halifax could not port from HTB to non-HTB and vice-versa so a broker went to their BDM and got an ERC waiver on the basis of a loyal mover remaining with Halifax for their new mortgage. A new product was chosen in these circumstances.

At completion, the ERC could be avoided, or at worst paid and refunded. This MUST be done in advance though. We used to get an email to confirm it.

Now, Halifax products are portable across the whole residential range, so HTB to non-HTB etc is now possible. We tried to do such an illustration last week and got the following from our BDM when we had a problem;-

"All products on all scheme types are fully portable. The system usually supports this. If the system will not allow it please submit the new application on the top up rate and as soon as the full application is submitted call Head Office and we can ensure that this is corrected for you."

Chrishartjones

Thank you for this info. So by the sounds of it, we shouldn’t have to pay the charge?

haras_nosirrah

I think you need to check if the product you had was portable to a help to buy

If it was then by choosing a new product the erc is due.

kingstreet

Chrishartjones wrote: »

Thank you for this info. So by the sounds of it, we shouldn’t have to pay the charge?

That would depend on when this started compared to when the process changed.

Chrishartjones

The old mortgage product wasn’t portable with our new mortgage but we were told ‘provided you take a new mortgage with the Halifax’ then the ERP charge will not apply.

kingstreet

Chrishartjones wrote: »

The old mortgage product wasn’t portable with our new mortgage but we were told ‘provided you take a new mortgage with the Halifax’ then the ERP charge will not apply.

Right.

That sounds like pre-portability and the question now is did you (or your broker) get the ERC waiver I referred to earlier...?

Chrishartjones

When we had our mortgage review, the first question I asked was if the ERP charge would be waived. I was told by my broker that it would.

Broadyx

sorry if i have missed it - have you been back to your broker about this? if so, what has he said?