How do I get out of a fixed rate bond early

speccyget

Help please. We have just comitted to buying a new build Wimpey home not realising at the time that we have to complete by June 30th. The problem is our deposit money is locked away in a fixed rate bond until July 17th. Only 17 days but Wimpey will not wait. Is there a way of getting my money out early? If I can withdraw early am I likely to lose a lot of interest. I really dont want to lose this house as ww managed to get it at a good price for this area. Anybody got any ideas please?

rb10

Read the T&Cs for that account, or ask the bank.

Different accounts have different conditions, some will not let you close early under any circumstances, others will just impose an interest penalty.

BruceyBonus

It depends on the account that you have opened. Some allow early access on loss of x days interest, others don't allow any access. You will need to check the paperwork then get in contact with the bank/building society to arrange access to the money.

speccyget

rb10 wrote: »

Read the T&Cs for that account, or ask the bank.

Different accounts have different conditions, some will not let you close early under any circumstances, others will just impose an interest penalty.

"6c. For Fixed Rate Bonds, early account closure is not permitted, unless when you,
the account holder moves abroad, this will result in the account being closed along

with a penalty fee of 90 days' interest plus an administration fee £250.00."

90 days interest plus £250 would be about £1000. I could live with that if they would do it. I am not moving abroad though.

Lokolo

Then you can't withdraw the money.

rb10

The grammar in those T&Cs is terrible! I'm sure they've missed words and/or punctuation out from several places.

It might still be worth giving them a call, to see if the rules can be bent.

speccyget

Lokolo wrote: »

Then you can't withdraw the money.

Hmm...!!!!!!. How about if I get my solicitor to stall Wimpey somehow. Would that work. How stubborn can Wimpey be?

speccyget

rb10 wrote: »

The grammar in those T&Cs is terrible! I'm sure they've missed words and/or punctuation out from several places.

It might still be worth giving them a call, to see if the rules can be bent.

I will give them a ring tomorrow and state my case but I don't hold out much hope. I am just trying to find some other options. Can someone lend me 40k for 17 days please. lol.

mumofjusttwo

I would certainly give them a call. If you had a good rate on the savings they may be happy for you to withdraw money early.

You could ask about changing the date- what is the worst that could happen?......

speccyget

Thanks everyone. I will definitely phone them tomorrow.

DiggerUK

speccyget,
It used to be called a "bridging loan" check if your mortgage provider, or bank, will put up the money for 17 days, or the holder of your bond. Work out the costs to see if it is worth while.

If it was me I would face down Wimpey, what can they do to you? I doubt if they have buyers queuing round the block. And why should they take you to court if the money is going to be there in 17 days, they're business people after all, they just want the sale.

Do a Braveheart and "Hold....Hold....Hold"