Really need some help regarding early repayment penalties please

glock339

Hi, I've just found out the Mrs has been playing away from home with half of the city, so I need to sell my house as neither one of us can afford to make the repayments alone. As my luck would have it I just renewed my mortgage a few months ago and its fixed for 5 years!!! I think its about £7000 to end it so I was wondering if theres any options I can consider to claw back a few pennies, otherwise I'm gonna be in deep do-do financially. With the way house prices are and with £7000 charges (and all the other fees etc) I could even go into serious debt.


Could I transfer the mortgage to another cheaper property for my self and ask for my mortgage to be reduced? Would they cut me any slack and reduce the charge or am I completely knackered here? Cant believe the situation I'm in!!!

koexelek

If you reduced the mortgage and transferred it to a cheaper property, it is common practice for you to pay the redemption penalty on the pary you redeemed.

e.g you have a mortgage for £150000 with a £6000 penalty, but take out a £100000 mortgage next time, therefore you pay a £2000 penalty.

You would have to buy and sell within 3 months usually though, or the lenders will enforce the full penalty

glock339

Hmm, that sounds like it's my only slim chance them. Thanks very much for that, I'll look into it.