Mortgage entry fee brought in by Halifax

At the end of last month the Halifax brought in a new charge for mortgage customers, requiring new customers to pay a mortgage entry fee of £245 when their mortgage is completed and the funds are released. Many industry officials have slated the move from Halifax, stating that the new fee simply replaces the old exit fee.

The new charge from the Halifax is called the mortgage account fee, and this effectively brings an end to fee free mortgages with the lender. Halifax officials have said that the fee is designed to cover ‘the setting up, routine maintenance and closing down of the mortgage account’. However, not all industry officials are convinced by this explanation.

One official said: ‘Halifax reduced exit fees right down from £175 to around £50 or waived them. But at the time that all this was happening Abbey was pilloried as it introduced an administration fee for mortgage customers. ‘

She continued: ‘The Halifax got the halo effect but now all the furore has died down it is trying to get under the radar and come out with a more expensive fee. HBOS has waited until the exit fees debate has died down before sneaking in a more expensive charge. I urge HBOS to scrap this decision.’