As a lender, Halifax has made a point of contacting clients up to four months in advance of their current deal ending.
It also allows us as brokers to process a product transfer using the same timeframes.
What we have realised though, is that where the new product transfer deal carries an arrangement fee, Halifax adds this fee to the existing mortgage balance months before the product transfer occurs.
In one example, a client requested a product transfer directly with Halifax and had a £799 arrangement fee added to her mortgage account three months prior to her physically moving onto the new product.
On contacting Halifax, she was told that this was its standard policy and that interest would be charged straight away.
How can charging a client £799, three months before they actually take a deal be fair – especially when the client is being charged interest on the fee as well?
I’d love to know the answer to this.
Regards
Ian Crampton
Ferndown Limited
A spokesperson for Halifax, responded:
“Customers have the option to pay the fee upfront or to add it to their mortgage balance.
“The product fee is part of the overall pricing for the product. Essentially the customer is paying to secure a product rate, which may not be available when it comes to the time of their cessation; hence this fee is payable straight away.”
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