Redemption is it legal

Joanna02_2

Many thanks I think I will try the equity of redemption angle.It's worth a couple of letters any way. Will let you know if it works.
Jo

u144675

Thanks for your answer - however, we are still going to persue, Like Joanna, I think its worth a couple of letters. I think if anything we'll feel better about it and if we can get any money back its a bonus.

TangentMan

If you signed a deal that has early repayment charges in it then you are bound both legally and morally to pay them. It may be that they were not declared adequately to you at the time and so on and you might therefore need to plead on your ignorance of the detail, however from these posts it doesn't seem that either if you were actually ignorant of the detail at the time.

I am sure the law lecturer is stating that arbitary non decalred administration costs would be illegal (i.e. if you are trying to redeem and the lender says "certainly and that will be £10,000 to cover 'Friday afternoon' costs we only introduced it last week, so that's why you have never heard of it").

Remember, most Early Repayment Charges are there to recover some sort of benefit you have had on a preferential deal (i.e. you have had a discounted rate and are leaving early so they want some of that loss recovered).

In terms of not buying again due to being skint - have you thought of buying something smaller. That way you might still be able to port (transfer for your existing mortgage to a new property), avoid the penalty, retain your investment and get some extra cash to clear some other debts ? Note i am not a financial advisor, don't know your full circumstances etc blah disclaimer.