Excuse my ignorance! But am confused!

michelleliverpool

Sorry guys, to most of you this will seem like a straight forward question and one that has been covered in other threads but I am still confused! (doesnt take much!)

I had a mortgage with Yorkshire bank. After two years of a good deal (first time buyer), Alliance and Leicester had a better deal so i switched. On the documentation (02/07), it says:

Principal balance (amt still owing):~ 51K

Then it says:

Interest Accrued £165.94
Prepayment penalty £0
Payoff fees: £195.00

Can I reclaim the Interest Accrued and/or payoff fees??

Thanks
Michelle

Martinslovechild

The interest accrued is charged on a daily basis between the date of your normal payment and the date the mortgage is fully redeemed, e.g. if you normally pay on the 1st of each month and you moved to A&L on the 18th, you would be charged 18 days interest. This is quite normal.

The redemption fee of £195 can only be partially reduced if your original mortgage offer letter from Yorkshire Bank specified a lower amount, i.e. if when you applied the offer letter specified a redemption fee of just £95, you can effectively reclaim the difference - in this example £100. If however the original offer letter specified a charge of £195 at that time, then you cannot claim.

michelleliverpool

Thank you very much for that reply, great help! Its soooo much clearer now !!