transfering mortgages from one provider to another, do you...?

Question

I have been going through transfer from the Halifax to HSBC, I got a letter today saying about a £827 Early Repayment Charge, I thought I was just transfering to another lender not paying my mortgage off early? So Y does it seem the Halifax want to charge me?

Answer 1

You are paying off your mortgage with one lender and remortgaging with another. If there is an early redemption fee chargable as per your contract then they are correct to collect it. You should check all these things prior to moving mortgage provider and go with a firm that has no early redemption fee should you choose to move again in the future.

Answer 2

If you are using a mortgage broker, they have let you down badly as they should have warned you about this. If you are doing this on your own, then it is an expensive lesson.
One thing always to bear in mind when dealing with any financial institution,bank, pension provider etc., is that they are all parasites. They have only one interest, and that is not you.They exist to generate profit for high living. They will never 'help' you, they will always charge you, they give you nothing and take as much as they can from you either by stealth,biased contracts, or your apathy.They are never to be trusted.Just as some parasites serve a useful function,so do the banks.With good financial management, and the passing of time, however, you should be in the position to swat the greedy money-lending usurers.
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Answer 3

The terms and conditions of your mortgage would have stated any early redemption charges.

The reason they charge is to
1) Recover any costs they have incurred
2) To try and discourage people from leaving

The amounts they can charge will be restricted by goverening bodies and competition/competitors charges.