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Redemption Penalties
Bettyboop
Posts: 1,343 Forumite
Hi,
A very quick question? When we took out our mortgage deal on fixed rate before the crises we were not told that should we sell our property that we would be fined in lost interest
? We have just received the new statement and someone had said before that a figure for redemption is always put on mortgage statements.
I have had a flick through the paperwork and can't see anything relating to be fined if we sell so to speak. According to our morgage provider if we sell now or within the fixed period we will incur a charge of between £6,000 and £8,000 :mad:! Outrageous when most people have lost equity!
Anyone been through this before? What did you do about it? Thanks!
A very quick question? When we took out our mortgage deal on fixed rate before the crises we were not told that should we sell our property that we would be fined in lost interest
? We have just received the new statement and someone had said before that a figure for redemption is always put on mortgage statements.I have had a flick through the paperwork and can't see anything relating to be fined if we sell so to speak. According to our morgage provider if we sell now or within the fixed period we will incur a charge of between £6,000 and £8,000 :mad:! Outrageous when most people have lost equity!
Anyone been through this before? What did you do about it? Thanks!
For God knew in His great wisdom
That he couldn't be everywhere,
So he put His little Children
In a loving mother's care.
0
Comments
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im sorry but if you end a fixed rate deal early, whether because you sold the house or not , you have ended the deal early and therefore are liable to ERC,s !! as per the KFI's state.
Another reason why you have to look at the product you chose and make sure it suits you !!!0 -
we will incur a charge of between £6,000 and £8,000 :mad:! Outrageous when most people have lost equity!
Its not outrageous at all. You knew the facts before you bought the product. You were quite happy to get the benefits of the deal and you knew that property values go down as well as up.
The charge is valid and understandable and quite fair.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Hi,
Yup,
We had a fixed rate mortgage before and had to redeem the mortgage before the end of the fixed term. We paid the penalty, its standard on fixed rate mortgages. I'm afraid there is nothing to do!! If you redeem the policy you have to pay the penalty! That's how I understand it anyway.
Sorry
HP0 -
Nothing you can do - the ERC would have been very clear on your mortgage offer, so I don't know why you think you weren't told.0
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Some lenders allow you to move your existing mortgage over to your new property and avoid the ERC.
Nationwide Building Society is one such lender................................I have put my clock back....... Kcolc ym0 -
Nothing you can do - the ERC would have been very clear on your mortgage offer, so I don't know why you think you weren't told.
That's just it. It's not on my mortgage offer! So it's not that I don't think - I wasn't told and that's my point. My husband was obviously at the appointment and we have discussed this in depth and nothing was mentioned. We have nothing in writing and nothing in our paperwork.
For God knew in His great wisdom
That he couldn't be everywhere,
So he put His little Children
In a loving mother's care.0 -
That's just it. It's not on my mortgage offer! So it's not that I don't think - I wasn't told and that's my point. My husband was obviously at the appointment and we have discussed this in depth and nothing was mentioned. We have nothing in writing and nothing in our paperwork.
Look at
section 10. What happens if you do not want this mortgage anymore?
Early Repayment Charges apply to this loan until....0
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