Early Repayment fee

cmcconnachie

I hope that someone out there can help me. I have recently settled my mortgage and was charged £5600 early repayment fee. I was advised that i would have this money returned to me if i applied for a new morgage within 6 months. I have since applied and the morgage company have refused to allow me to "port" my old morgage over and reclaim my £5600, however, they have said that they will give me a brand new morgage (thus loosing my money). How can this be legal? I sold my house due to financial hardship and feel that the morgage company have cheeted me out of this money. Please can someone tell me if there is any way at all that i can reclaim this money? I am now not in a financial position to buy a property as the £5600 would have been my deposit on a new morgage. Your help would be very much appreciated!!!

p.s I had a 2 year fixed term morgage which would have been due for renewal in Oct 08. I sold my house in June 08.

_Andy_

Which lender is it?

koexelek

Check what it says in the original mortgage offer. Those are the conditions you will be bound by.

Some lenders are not able to port the actual product, but they will normally waive the penalty if you take another mortgage with them for the same amount or more on a different product.

That does seem very harsh

_Andy_

Possibly a subprime lender where the OP no longer meets the product criteria and is being put on a higher adverse product?

cmcconnachie

The lender was Birmingham Midshires which is owned by Halifax:beer:

cmcconnachie

I am hopeful that there is some way round this in order for me to claim this money back.

Toughluck

I doubt you will get this money back. Portability is "final" and if you have not met the lenders stiff criteria and time scales then I am afraid you would have paid it. Did you manage to buy another property with another lender or did you go into rented?