Hal­i­fax re­fuses to move mort­gage

The Daily Telegraph - Your Money - - READERS’ LETTERS -

Hal­i­fax has re­fused to move our ex­ist­ing mort­gage now that we are mov­ing to a cheaper house.

This would bring the bor­row­ing down from £127,111 to £80,000. Yet now the bank will take only my teacher’s and state pen­sion into ac­count and not our much higher rental in­come.

Ad­di­tion­ally, as the mort­gage was rene­go­ti­ated only some eight months ago, I am con­cerned that it will try to charge an early re­pay­ment fee, even though it is the bank that has opted out of the ar­range­ment and not us.

Can you help us out please? JOHN GUY, BIRM­ING­HAM

By the time I re­ceived your let­ter you had in­deed been billed for a hefty re­pay­ment charge.

Hal­i­fax had said the max­i­mum it would con­sider lend­ing was £54,000. This would be for six years on an in­ter­est-only ba­sis. This fac­tored in just the pen­sion in­come as the bank said it had no­ticed that your self-em­ploy­ment in­come, which is de­rived from eight stu­dent rental prop­er­ties, had been fall­ing.

In fact this is be­cause you have been re­fur­bish­ing the prop­er­ties. The rental in­come has ac­tu­ally been go­ing up.

Hal­i­fax had writ­ten to you stat­ing em­phat­i­cally that “there is no fur­ther ap­peal and the mort­gage un­der­writ­ers’ de­ci­sion is fi­nal”. All your ar­gu­ments had been to no avail.

When I spoke to Hal­i­fax it re­ferred to the prob­lems it had had in the past over lend­ing to peo­ple who fell into ar­rears and could not pay their loan back. I ob­served that you struck me as be­ing bor­row­ing min­nows and had al­ways paid on time. It seemed strange that, given your in­come and other prop­er­ties, it wouldn’t do as you were ask­ing.

Hal­i­fax now said it would be pre­pared to lend to you af­ter all. By then though you had found an al­ter­na­tive lender who has pro­vided the mort­gage you wanted at a lower in­ter­est rate.

Hal­i­fax has waived the £5,053 early re­demp­tion fee and given you £300 for good­will. £308 re­mained ow­ing for elec­tric­ity.

It now ac­knowl­edges that it would have been bet­ter to deduct the re­fund from the money owed. Af­ter a lot of dis­cus­sion with me it has re­duced this bill to £108. It has apol­o­gised for the in­con­ve­nience caused.

You say you are pay­ing around 50pc less to your new provider than you were pay­ing Scot­tish Power.

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