Early Redemption Penalty Charges

tango

Could anyone offer any advice on early redemption penalty charges?
I know it probably wont be good news, but i am separating and the house is up for sale,the trouble is we have a huge penalty charge of £10,000 :eek: :eek: :eek: :eek: if we redeem the mortgage before feb next year, Is there any way we could get this reduced,or has anyone had any luck in this area?
thanks tango.

dwsjarcmcd

You won't be able to avoid penalties if you redeem the mortgage but there is a way round some or all of this, if you are buying a new property(s). Most loans are portable meaning you can transfer the current mortgage (even in joint names currently) to a new property in one name. While it is usual that both parties downsize, at least you should be able to reduce the penalties proportionately. Some will lenders will allow you up to 6 months to do this, although you will probably have to repay the fee first and then get it returned when you buy.
If you are both buying, they may even let one take as much as they need to fund the new place and the other takes on the remaining element of the loan, topped up by another of the lenders products to fully fund the purchase.
There may be some fees for all this but nthing like £10k. Talk to your lender.

tango

dwsjarcmcd wrote:

You won't be able to avoid penalties if you redeem the mortgage but there is a way round some or all of this, if you are buying a new property(s). Most loans are portable meaning you can transfer the current mortgage (even in joint names currently) to a new property in one name. While it is usual that both parties downsize, at least you should be able to reduce the penalties proportionately. Some will lenders will allow you up to 6 months to do this, although you will probably have to repay the fee first and then get it returned when you buy.
If you are both buying, they may even let one take as much as they need to fund the new place and the other takes on the remaining element of the loan, topped up by another of the lenders products to fully fund the purchase.
There may be some fees for all this but nthing like £10k. Talk to your lender.

Thanks for that i am going to talk to our lender tomorrow,we would not be buying,at least i won't,and we are mortgaged to the hilt,so no money for a deposit etc. thanks tango

Ian_W

tango wrote: Thanks for that i am going to talk to our lender tomorrow,we would not be buying,at least i won't,and we are mortgaged to the hilt,so no money for a deposit etc. thanks tango

Oh, dear! I don't think it's going to be good news I'm afraid tango. BoL anyway.

tango

Ian_W wrote:

Oh, dear! I don't think it's going to be good news I'm afraid tango. BoL anyway.

Thanks,need that in bucket loads :rotfl: forward forward