Mortgage redemtion question

Dukes_of_hazard

Our Chain has just collapsed for the second time and we are considering going into rented to at least get our house sold before our buyer pulls out !

We would have to pay a redemtion penalty on our loan, my question is if we then buy our house in about 3 months time would the bank refund our redemtion penalty ?

Hope you understand this poorly written question !!

Thanks

Duke

Ian_W

Hi Dukes,
I think it depends on the lender, I believe many these days will allow around 6 months to port your mortgage to another property while others won't allow it. If you've got your mortgage T&Cs handy they might tell you, otherwise give them a ring on Monday. It's certainly a distinct possibility.

aliasojo

I have a redemption quote summary in front of me right now, which arrived in the post today from A&L. (Bit late....mortgage was paid off 3 days ago :rolleyes: .)

Customers taking a new Alliance and Leicester Mortgage

The Redemption Administration Charge will not become payable if a new loan is simultaneously taken out with us on another property that the borrower purchases.


So going by that statement you wouldn't get refunded (if I am interpreting that correctly) if you were with A&L.

I think you should call your lender to clarify.

silvercar

At the Coventry you have to pay the redemption penalty, BUT it is refunded if you take a new mortgage with them within 6 months. I think if the difference is less than 2 weeks they won't bother charging at all.

linda.b_4

With the Abbey its 3 months as I asked when we were moving in case we had to break the chain and move into rented, which, thank god, we didn't!

Doozergirl

We've asked nicely in the past and were given 3 months to find a new house even when it wasn't in the terms. I think manylenders would rather have all that lovely interest for years to come than a one off penalty charge.

Ask them; Good Luck!

Dukes_of_hazard

Rang Nationwide today and they said they would refund the redemption penalty as long as I continued with the Mortgage within 6 mths.

Great.

Thanks for your replys