NR - Beware - Help with costs exit fee

JRPeach

Word of advice to all you who are about to redeem your NR mortgage, if you had a 'Help with costs' offer on your mortgage, make sure the expiry date coincides with the mortgage expiry date!! I have just redeemed mine and they had 2 dates, 2/5 for the mortgage and 6/5 for the help with costs. I fought them and argued there was no transparency in their letters to me, only clarifying the mortgage expiry date of 2/5. They have since conceded and gave me my refund less the extra 4 days interest. Pass this on to anyone you know about to redeem theirs.
JR

homer_j_3

When did you take out your mortgage because it should have been transparent in the illustration and offer that you got.

If you managed to convince them otherwise then maybe you should be letting people know what your exact argument was as many have tried and failed in doing this.

payless

Believe most of their deals end on 1st of a month - so correct - redeem from 2nd... think HWC was a flat number ( varies ) of months from when mortgage actually started. Would have thought a redemption statement would show the different dates

JRPeach

"Would have thought a redemption statement would show the different dates"

That was another one of my arguments, at no stage did they state two expiry dates. I was completely led to believe my mortgage expired on 2nd May. How would I know the completion of help with costs didn't tie into the mortgage start date? That information is in their files and they didn't share it with me.

JR

Ian_Griffiths_Halifax

The Help With Costs benefit changed a few times in it's lifetime but I think the one you are referring to was to be refunded if you redeemed the mortgage within 3 1/2 years of taking out the mortgage.

The Fixed Rate End Date was a shorter period for many of these mortgages, but for those people who had a 5 year Fixed Rate, it meant that the Help With Costs penalty ended before the Fixed Rate penalty.

Ian_Griffiths_Halifax

JRPeach wrote: »

"Would have thought a redemption statement would show the different dates"

That was another one of my arguments, at no stage did they state two expiry dates. I was completely led to believe my mortgage expired on 2nd May. How would I know the completion of help with costs didn't tie into the mortgage start date? That information is in their files and they didn't share it with me.

JR

On your Mortgage Statement it would have shown any redemption penalties on the mortgage, but would only have had a paragraph stating something along the lines or 'if you took Help With Costs, then there may be a penalty for redeeming the mortgage'. This was always a bit vague and should really have had 2 separate penalty end dates. If they were going to mention penalties on the mortgage statements they should have mentioned both or neither so that there was no confusion IMO.

homer_j_3

Ian_Griffiths_Halifax wrote: »

The Help With Costs benefit changed a few times in it's lifetime but I think the one you are referring to was to be refunded if you redeemed the mortgage within 3 1/2 years of taking out the mortgage.

The Fixed Rate End Date was a shorter period for many of these mortgages, but for those people who had a 5 year Fixed Rate, it meant that the Help With Costs penalty ended before the Fixed Rate penalty.

That was my take on it too.

Appears from his other post, it was only an 18mth deal that they had, which has baffled me even further - unless there was a 2yr deal before the 18mth deal, which would make our understanding correct....