Redemption Penalty - Northern Rock 5yr Fixed

Cappuccino

Well I think will just see what happens next year. If we are in a position to sell then it may at least be worth arguing our case with Northern Rock.

Our main point of contention would be that after nearly 4 years of serving the fixed rate period, Northern Rock will have received £30,000 worth of interest and that they are only exposed for 1 to 1.5 years instead of 5 years so the risk to them is much less.

Just because something is in a contract it does not make it necessarily legal.
Anyway first off I need to double check the Key Features sheet we were given and ensure the details of the redemption penalty are listed on that. If they are not for any reason then I could argue that we have reasonable grounds that the mortgage conditions were mis-sold to us and that we were genuinely unaware of the existence and extent of the redemption penalty.

I could also ask them to provide documented evidence that the level of the penalty is representative of the cost to them, particularly how they justify charging the same penalty redeeming in the fourth year as redeeming in the first year, when the money paid to them is much greater and the risk to them with a shorter period to run is much less.

stuarthouse

We took a NR 5yr fixed march 2006 4.99
£4300 ERP + £250 get out of motgage ...
even when they were trying to offload customer to reduc e their burden, the still applied the ERP

uzubairu

Cappuccino wrote: »

Just because something is in a contract it does not make it necessarily legal.
Anyway first off I need to double check the Key Features sheet we were given and ensure the details of the redemption penalty are listed on that. If they are not for any reason then I could argue that we have reasonable grounds that the mortgage conditions were mis-sold to us and that we were genuinely unaware of the existence and extent of the redemption penalty.

We took out a fixed rate product with Nationwide in July 2006 and I've just checked the Key Facts and it is clearly stated about early redemption.

Maybe you didn't bother to read it thoroughly (I always read the small print as a mortgage is a very large undertaking to enter into without care and attention) or the page is missing.

Good luck in your future plans.

Good luck