Angry at Halifax, no decent rate for existing customers!

Glamourpuss_3

Hi everyone

I just have to rant!

My husband and I have our mortgage with the Halifax and our 2 year fixed rate mortgage ran out a couple of months ago so we got bumped up to 6.5% variable rate. I really should have sorted out a new rate to start as soon as our old rate ran out but I'll know better next time! In June they offered me to change to 5.69% for 5 years but I decided to wait a couple of months to see if it would drop down so I could get a better deal as if I'd signed up for the 5 year I would have had fees to pay if I'd tried to change it before the 5 years were up.

I'd heard all about how some fixed rates had dropped and I'd been reading some very useful posts about it on this forum. I checked out the Halifax website and in their 2 year fixed rate section there are rates quoted at 4.39% with £299 arrangement fee for a 90% mortgage and 4.69% with £499 arrangement fee for a 95% mortgage.

So I phoned up to see what was available for existing customers and the best they will offer is 5.45% with £199 arrangement fee for 2 years or 5.65% with no arrangement fee for 5 years.

I told the person I spoke to that I will be looking elsewhere and that I was very disappointed with the Halifax for not offering good rates to their existing customers. He replied saying that it works both ways as when I was a new customer I got a good rate (I think he was meaning that I shouldn't moan about it) and I replied saying that if thats how it is then I'll go off and be a new customer with a new provider and get a decent quote that way. He also told me that it may not be worth it going to another provider as I'll need to pay Halifax £225 deeds dispatch fees and whatever fees the other provider has.

Now I'll have to try to find a good fixed rate with another provider without large arrangement fees.

Thanks for listening!

KTF

I also have a mortgage with Halifax (a fixed rate that is ending at the end of September) and they quoted me the same crap rates when I called up to see what they could offer me so I am in the process of moving to the Nationwide (4.39% for 2 years with a 395£ fee, 95£ admin fee and free legals) instead. Even with the fees it will work out cheaper over the term than staying with them.

I was quoted 200£ (50£ fees dispatch and £150 admin) and for leaving them which I am more than happy to pay so I would check the figure they quoted you.

herbiesjp

Glamourpuss - Halifax are not the only culprits here and totally understand your frustration.

Exercise your right to walk away and find a better deal elsewhere - however be careful, as depending on the size of the mortgage fees become very important i.e the smaller the mortgage amount the more impact that they have on saving money to re-mortgage

no_bull

I am in the same boat :mad: why do Halifax do this ? Is stupid eh ? Customer loyalty = 0 with this organisation

So maybe I will be skipping off soon too

lalalala

Avril xx

payless

no_bull wrote:

I am in the same boat :mad: why do Halifax do this ? Is stupid eh ?

suppose they take a commercial decision

1. That many people are still prepared ( unawares? ), to pay SVR or one of their other "retention " rates

2. Some people are not in a position to move, due to change in circumstances

3. I assume not a great deal of profit in these incentive deals , so prepared to see you leave ( and cahrge an exit fee! ) rather than keep you
( although I would say offering really good deals to attrct new remortgage business, goes against this grain, as someone prepared to swap Now will likely be prepared to swap later)

Not saying its right ( in eyes of consumers) , but they don't seem to be doing to badly out of it, as a commercial outfit

cattie

My 3yr discount with the Halifax ended this month, but because I have only a small mortgage I've found it wouldn't financially pay me to move to another provider because of the relevant fee's etc payable. So I've taken another discount deal with them, but with no fee's, penalties or tie-ins, then if in the interim I find something else on offer to go for that will benefit me, I'll be able to do so. My monthly payment is now slightly less than it was previously, so I'm content with that.

It is annoying that the Halifax don't make the lower rate deals available to their existing customers & I was dismayed to find that they no longer do the customer loyalty deals that they once did.

Froggitt

Shows theyve learnt nothing since I moved from Halifax eight years ago for exactly the same reasons. SUrely better to make a small profit on someone rather than none.

crazyhazy

for your next mortgage go with a company which advertises the fact it offers the same rate for all their customers not just new ones. Direct line, first active and I think natwest all offer this. I've decided this is what we'll do when we remortgage, we're with northern rock at the moment and they don't seem to have very competitive rates, although the £195 deeds fee and £250 mortgage release fee are a bit annoying! I was thinking the other day and if you fix for 2 yrs and change lenders every 2 years, over a 25 year term, and pay £195 for deeds each time, you'll pay well over £2k in deeds fees! SO we'll be going with a company which offers good rates to all.

Ian_W

crazyhazy wrote: go with a company which advertises the fact it offers the same rate for all their customers not just new ones. Direct line, first active and I think natwest all offer this.

And don't forget Nationwide - just love their ad - PEN, SORRY BRAND NEW CUSTOMERS ONLY! :rotfl:
Clearly aimed at Halifax, Abbey [colour scheme in ad very similar] and others who won't offer decent deals to existing customers. I've remortgaged 3 or 4 times in the last 10 years and I'd have stayed with any of the lenders I was with, if they hadn't been taking the p*ss out of me when my deal with them finished. Even if it hadn't have been the best, just close enough to make the expense and time of remortgaging not worthwhile.

Increased Deeds release fees etc are a rip-off & the firms that don't give existing customers access to their best deals have certainly [maybe with others] have "filled their boots" recently with them.

I'd now check any lenders release fees before I switch to them, again NW comes out favourably in that regard.

Lest anyoneone thinks this an advertorial for them, I have no connection and haven't even had a mortgage with them. But they'll get a much closer "coat of looking at" next time I do.

Glamourpuss_3

Thanks to everyone who has replied to my post, I really appreciate the advice!

I've been looking on a few sites to check out rates and Directline are currently offering a "Switch for free" remortgage and they have a 3 year fixed rate at 4.69% which sounds good to me as I'm not sure I want to commit to a 5 year rate but I also don't want to be facing this kind of situation again in only 2 years so having a 3 year deal sounds like the best plan for me.

Sorry if I'm not making sense! I'm sleepy!

CRUISEMAN

I think you need to remember that the Halifax have probably made very little profit, if any at all, during the time you had your mortgage with them. To let you go to another probably loss making deal does not make commercial sense to them. (The two deals you mention are more than likely funded at rates higher than the rate they charge you!)

I can understand your frustration, but I can also see why they have done this.