In this brief blog, we are going to discuss Halifax mortgage fees.
Halifax mortgage fees
When taking out a mortgage with Halifax and most mortgage lenders in the UK, there will usually be a few mortgage fees involved in setting the mortgage up. This will be mortgage application fees, valuation fees, etc. Halifax also has its mortgage fees and we have highlighted them below.
Halifax mortgage fees before you get a mortgage
There are various fees you may incur before you agree or complete on your mortgage, they are:
The Halifax product fee-
This fee is charged for Halifax setting up your mortgage, it will differ based on the type of mortgage and the size of your mortgage and so there isn’t any fixed price. You will see this fee in your key facts illustration document before you agree to get a mortgage.
The Halifax valuation fee-
The Halifax valuation fee is what Halifax will pay to value your property before or after they have provided you with a mortgage offer. Tiis fee has nothing to do with any property valuation you may arrange for yourself. Not all Halifax mortgages will charge a valuation fee, some may offer a free valuation as part of the mortgage.
The Halifax valuation fee will vary based on the price of the property and if it is simply a mortgage valuation or a property survey being carried out as well.
The table below displays the Halifax mortgage fees for a mortgage valuation or a survey and valuation based on a maximum property price.
|Purchase price no more than||Valuation only||Survey and valuation|
Mortgage account fee-
You may be charged a mortgage account fee depending on the mortgage you take out. This fee covers the work required for Halifax to set up and manage your mortgage account. It is a one time fee. The Halifax mortgage account fee is £295.
Halifax reinspection fee-
In some cases, Halifax may need to reinspect your home or revalue your home if it has released funds to you on the basis that you will make some home improvements or if Halifax is releasing mortgage funds to you in stages of home development. The Halifax reinspection fee is £70 per inspection.
Halifax mortgage fees during a mortgage
There may also be some Halifax mortgage fees which you may incur during your Halifax mortgage term. These include:
A revaluation fee-
You may need to pay a revaluation fee if you want a further advance(additional borrowing) on your current mortgage. The revaluation fee uses the table below.
|Estimated value up to and including (£)||Valuation fee including VAT if applicable (£)|
An early repayment charge(changing mortgage)-
You may have to pay an early repayment charge if you overpay on your Halifax mortgage beyond what has been agreed as the mortgage overpayment limit on that mortgage.
U may also have to pay an overpayment charge if you switch your mortgage lender or switch your mortgage product to another Halifax mortgage product.
The early repayment charge will be detailed in your key facts illustration document.
Arrears management fee-
Halifax may charge you an arrears management fee each tim they try to contact you about an arrears on your mortgage. The arrears management fee is £35.
If Halifax instruct litigators to collect arrears or begin a home repossession process then they may charge you a litigation fee of £100.
You may also incur other costs due to this, they include
“ Field Agent costs – a Field Agent is a third party who will make a visit to the property to discuss your financial circumstances on our behalf.
Solicitor’s costs – individual to each case.
Asset Managers costs – Asset Managers are third parties who will manage the marketing and sale of a repossessed property. “
Halifax mortgage fees to close a mortgage
There may be some Halifax mortgage fees which you need to pay in order to close your Halifax mortgage.
An early repayment charge (ending your mortgage)-
If you end your mortgage before the mortgage term you may have to pay an early repayment charge. This charge is detailed in your key facts illustration document.
A mortgage exit fee-
The mortgage exit fee is up to £50.
Halifax says “ You may have to pay this if:
Your mortgage term comes to an end;
You transfer the loan to another lender; or
Transfer borrowing from one property to another.
This is payable either at the end of the mortgage term, or before the end of your mortgage term if you transfer the loan to another lender or another property (known as ‘redemption’).
You may be charged a separate fee by your solicitor or licensed or qualified conveyancer for their work relating to the redemption of the mortgage and discharge of the security.
The Repayment Administration fee was withdrawn for customers applying for a mortgage from 31st July 2007. If a Repayment Administration fee applies to your mortgage, the amount of the fee will be shown in your Annual Mortgage Statement. It will also be shown on any Amount Owing Statement we issue. The fee is charged when your account is closed. “
In this brief guide, we discussed the Halifax mortgage fees. If you have any questions let us know.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.