Shocked

tesuhoha

Recently the sale of our house fell through. At the time we were going to buy a property in Norfolk and as we had a fixed rate on our mortgage we went to our current building society as we thought it would save money. We were arranging a mortgage of £70,000 and we had approximately £50,000 owing on our present mortgage. We had the new mortgage arranged by a financial advisor at this building society and I asked her was there any way we could save paying a redemption fee. She said that we could keep the old mortgage of £50,000 on the same fixed rate of 5.74% and have a new separate mortgage for £20,000 which was on a lower interest rate. She implied that we wouldnt be able to make overpayments on the £50,000 without being charged a redemption fee but could overpay on the £20,000 part of the deal. We signed up for this and got the mortgage offer and if it wasnt for the sale falling through, we would have gone through with it. That was back in November.

Anyway last night I was looking at our January mortgage statement for another reason and saw the words Maximum Early Repayment Charge £0.00
Redemption Administration Fee £0.00. i then looked at the redemption statement sent to us by our solicitors at the time that the sale was going through and it said the same thing. I am therefore feeling rather relieved that we didnt take up this costly and unnecessary mortgage and shocked that the building society's financial advisor went along with my fears that we would have to pay a redemption fee. I am wondering if we have grounds to make a complaint or have i missed something?. Could a redemption fee still have been added even though it says nil on my annual statement?

cattie

If you check out your original mortgage documents they should detail any redemption penalties & the mortgage discharge fee.

These will be the conditions that apply to your mortgage & any discrepancy shown on your statement are likely to be due to imput error on the computer.