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Help Getting Out Of A Fixed Rate Mortgage
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it is irrelevant the time frame until next june or the amount you will have paid from now till then, if you cleard your mortgage next may you will have the same fee to pay.
i would imagine that as you say it is an adverse case you did not have a massive amount of options available to you when you were looking for the mortgage, so to say the advisor was trying to get you to sign up for him/her to get their commission is unfair and probably inaccurate.
perhaps next time you should go for a deal with no erc's then problem wont come up again.0 -
Hi again and thanks for all your replies,
the thing I can't get my head round is that my mortgage payments up to June next year would be about £5000 and yet they'd still want £7000 in penalties! I was told (by a financial advisor working for their company) that the penalties would be reduced as the length of the fixed rate term decreased however the company say that this is not the case! Another case of mis-selling to get a signature on a deal so Mr.Advisor gets his commission. And before some of you rant on about reading the small print, how many actually ever read the small print of every document you ever sign?
Tony
I can assure you if I'm borrowing hundreds of thousands of pounds I read the documents very carefully.0 -
Hi again and thanks for all your replies,
the thing I can't get my head round is that my mortgage payments up to June next year would be about £5000 and yet they'd still want £7000 in penalties! I was told (by a financial advisor working for their company) that the penalties would be reduced as the length of the fixed rate term decreased however the company say that this is not the case! Another case of mis-selling to get a signature on a deal so Mr.Advisor gets his commission. And before some of you rant on about reading the small print, how many actually ever read the small print of every document you ever sign?
Tony
He might not have been delibratley lying, many ERC's are a %, say 3% of amount you owe. On a repayment mortgage your balance would be reducing and so would the penalty.
That amount prob has reduced from when you took it out! -still huge though.Saving and spending in equal measure0 -
tinkerbell84 wrote: »0james0 - how come you don't have to have the official 'mortgage adviser' signature then?
Not a big fan of big signatures. Thought what I put would suffice.
No one has questioned it before so assumed people knew what it meant.Saving and spending in equal measure0 -
Not a big fan of big signatures. Thought what I put would suffice.
No one has questioned it before so assumed people knew what it meant.
I'm not entirely sure you'll get away with it. There have been ructions on here over mortgage adviser signatures.
Code of conduct for mortgage advisers here:
http://forums.moneysavingexpert.com/showthread.html?t=3253780 -
The advisor could well be perfectly correct that the ERCs reduce over the term, as said above if it's a repayment mortgage the balance you're being charged the ERC on will be reducing over the term. Also, it might be a tiered ERC for example, 3% of the balance in year 1 followed by 2% in year 2.
There have been some good suggestions offered by people here. It would really be worth your while giving them serious consideration.0 -
I was told (by a financial advisor working for their company) that the penalties would be reduced as the length of the fixed rate term decreased
Correct.Another case of mis-selling to get a signature on a deal so Mr.Advisor gets his commission.
OR another case of a stupid consumer who ignores what they are being told because they cannot be bothered to take an interest.And before some of you rant on about reading the small print, how many actually ever read the small print of every document you ever sign?
It isnt small print. You were told about it (you admit that the mortgage adviser told you). It is in the KFI which is short and simple document giving you all the monetary terms of the mortgage and its in the mortgage offer letter.
Trying to blame the adviser for your own failings is silly.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Many lenders charge a %age of the original loan amount, not the balance at the point it is redeemed.I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.0
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Not a big fan of big signatures. Thought what I put would suffice.
No one has questioned it before so assumed people knew what it meant.
Hi 0james0
Could you please amend your signature to the official one. We spent some time a while back putting this together to provide clarity.
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