Reclaim charges of unsued portibility option on mortgage

boomboom1

Hi , Iam looking to see if i can claim back my early redemption fee built into my mortgage , i was refused credit but had options on my buy to let mortgages which amounted to 5k + on three propertys . the lender refused me credit so i couldnt port my mortgage to my new propertys . is it possible to reclaim these charges .

Sorry if this question has been asked b4 regards boomboom1

dunstonh

Iam looking to see if i can claim back my early redemption fee built into my mortgage

No.

The ERC is a valid charge and fair. You buy a deal for a period and in exchange for that you get tied in. If you choose to finish early the lender still has to pay the investors that funded that deal or pay a penalty themselves. Hence the reason it exists.

The only way to get out of an ERC is to be with a lender that doesnt want you any more and is willing to pay to get rid of you. There are only a couple of those though.

TEDDYRUKSPIN

This has come up again and again.

Early repayment charges are fact! They are not illegal. They are written in stone.

The reason they are there is mainly due to the banks/buildings society agreeing to borrow money from the moneymarket for you for a set period of time.

For example:

Billy blogs wants £100k for a mortgage. He picks a 5 years fixed £100k at 3.9%. The so called rich bank goes to the moneymarket and gets this money in bulk. They agree with the moneymarket that this rate can be agreed for 5 years and if returned early must pay a penalty (hence..... early repayment charge).

2 years down the line, Billy blogs has an argument with Beth Blogs and wants to split up and sell up. The so called rich bank, now taking over by the government (now called, "Tax payer'S toxic Bank" aka TSB), wants the early repayment charge penalty of £3k as part of the clause.

Billy blogs screams like a baby and says it is unfair. The government sticks up a finger and says pay it or stay with your ex- in the same house.

Billy Blogs pays up as he does not want to stay with his ex.

Both parties are happy and the recession continues.....

story goes on................

Shares plummit for the bank and the rich put £100k into the share to gain the small 10% increases each week. The poor get poorer and the rich get rich.

PS. READ THE STICKY CREATED BY MARTIN LEWIS ABOUT ERC.

Dan_1976

I am afraid the answer is no.