Redemption admin charge

stevie_wonder

Hi,
I'm coming to the end of my 2yr fix with A&L (4.89%) on 31/8 and for various reasons switching to an offset with One Account.

I'm just checking if there are any charges I am liable for and checked the key facts of my A&L mortgage:

"Early repayment charges

3.00% during the period starting on the day of funds release and ending on 31 August 2008. The early repayment charge would be £3900.

A redemption administration charge, currently £295, will be payable if you repay your mortgage in full early"

I won't be liable for ERC but my question is, would I have to pay the redemption admin charge when the remortgage goes through on 1st Sept? The wording was a bit wooly - "if I repay the mortgage in full early" - and I wondered if it meant repaid it during the fixed period or just at all?

It doesn't cause me a problem either way, just seeing if I can save £295. Pls let me know if you have any advice or experience.
Stevie

lisyloo

In this context "early" means before the end of the mortgage term (not the fixed deal).

The admin fees are for sending out the deeds and closing your account i.e. the admin work involved.

So yes, you do have to pay it.

Sometimes people can complain about these fees because they are too high, but in your case it seems like the amount was stated up front.

stevie_wonder

Thanks Lisyloo (that's what I used to call my sister btw when we were kids)
Yep was all clear up front, and what I expected the answer to be - oh well!