End of Mortgage redemption fee:

in Mortgage-free wannabe
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blindmanblindman Forumite
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I have two more mortgage payments to make :j

The last one will include the "redemption fee" of £135-I get to pay for the priviledge of paying up in full :rolleyes:

Is it worth trying to avoid this fee by not paying off the mortgage -ever?

I'm thinking I could cancel the DD before the last payment is due (I would owe them about £1K ) then paying the Building soc say £1 per month?

Is it feasible or worth it :confused:
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  • i know a lot of people just leave a balance of £1
    Mortgage Start jun 2007 £88500 Outstanding Balance £51000
    Overpayments 2007 Nil 2008 £1040 2009 £7853 2010 £10000 2011 aiming for £18000 (6k so far)
    The Early Bird Gets the Worm, but the Second Mouse Gets the Cheese!!
  • MarkyMarkDMarkyMarkD Forumite
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    If you don't pay the last payment when it's due, you will be in arrears and you may be charged. If the mortgage is interest only and you don't clear the balance on the expiry date, you will be in arrears and you may be charged.

    In any case, you are going to have to redeem the mortgage eventually - even if it's when you die. Simply pay the fee.
  • co123456co123456 Forumite
    368 Posts
    Mortgage-free Glee!
    It's my intention to try and get out of paying this fee. Yes, I know I agreed to it in the first place, however don't ask - don't get.
  • I work in a bank and you'll have a good job trying to get out of it.

    I work quite close to the customer relations (complaints) team and a lot of calls come through from customers trying to wangle their way out of it.

    The response is always the same - no way in hell. I'm sure that banks don't make much money off mortgages so they rely on the fees to make a bit of money.

    I wish you the best of luck but i'm sure only the most extreme of customers will have it waived.
  • co123456co123456 Forumite
    368 Posts
    Mortgage-free Glee!

    I wish you the best of luck but i'm sure only the most extreme of customers will have it waived.


    Hmmm.... reminds me of the time when I wanted to get out of an Estate Agency contract. Took the For Sale sign down, whitewashed it, painted POOR SERVICE HERE on it, before proceeding to stand outside their office for..... oooo.... 45 minutes, before a director hand wrote a letter in front of me releasing me from the contract. Got in the local paper too with a full colour photo.

    I kept a copy of the press cutting. Thought it might come in handy.
  • ShelleyC_2ShelleyC_2 Forumite
    1.5K Posts
    I'm sure that banks don't make much money off mortgages so they rely on the fees to make a bit of money.

    :rotfl::rotfl::rotfl:

    I think I'd just pay the fee to have the satisfaction of it being a zero balance.
    Looking for the perfect home and saving to make becoming a MFW easier
    MFiT3 48103/50000 Saved So Far :j
  • Hmmm.... reminds me of the time when I wanted to get out of an Estate Agency contract. Took the For Sale sign down, whitewashed it, painted POOR SERVICE HERE on it, before proceeding to stand outside their office for..... oooo.... 45 minutes, before a director hand wrote a letter in front of me releasing me from the contract. Got in the local paper too with a full colour photo.

    I kept a copy of the press cutting. Thought it might come in handy.

    I'm assuming you had a bad experience with the estate agent enough to warrant that!

    You've stayed with the lender this long so the service can't have been that terrible. £135 is not too bad, we charge 225 to close our mortgages!
  • blindmanblindman Forumite
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    You've stayed with the lender this long so the service can't have been that terrible. £135 is not too bad, we charge 225 to close our mortgages!

    Only 6 years. :rolleyes:

    I'd be interested to hear WHY there's a charge?

    Anyway I've had a slight rethink.

    I'll cancel the DD after the penultimate payment and then pay manually the last one but be short of about £10.00

    If I don't get penailized (?) then I could wait 20 years to pay the "only" :rolleyes: £135 which by then will be worth only £1.35 :D
  • co123456co123456 Forumite
    368 Posts
    Mortgage-free Glee!

    You've stayed with the lender this long so the service can't have been that terrible. £135 is not too bad, we charge 225 to close our mortgages!

    It's the challenge (sport?) of saving the money. It's going to cost Northern Rock money to keep sending me letters and statements, picking up the phone, cashing 30 quid in 1 Penny pieces, so I hope we can come to an agreement that saves both parties money.
  • MarkyMarkDMarkyMarkD Forumite
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    :confused: £30 in penny pieces is not legal tender, so I don't think you're going to get anywhere with that sort of silly approach.

    I don't quite see how it will cost any lender you money to "keep sending you letters and statements" if they charge you £25 or so each time - the letters will only happen if it's because you are in default.
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