What exactly is a Mortgage redemption fee?

dippy-dora_2

Hi, just looking at my end of year mortgage statement (properly for the first time!) and I notice a 90 quid fee called a Mortgage Redemption fee.


it also says"you wont be charged if the mortgage has less than 10 years to go."

Obviously I've been charged for it, but what is it for?

Seems quite alot of money to me and for what exactly?

90 pound a year for 15 years is 1,350!!

it's my third repayment mortage with Nationwide, for 3 properties - have I been paying this all along without realising for the past 17 years?
I know I should be more aware of these things but I honestly have never noticed this before.


Thanks to all replies in advance, of no thank you button

taylornj

Goto the nationwide web site http://www.nationwide.co.uk/mortgage/remortgage/fees.htm

See at the very bottom of the page, it's a single fee paid when you pay off the mortgage, they have to do various things like return deeds, notify land registry, etc. You should only ever be charged this once on a mortgage.

dippy-dora_2

Hi, thanks for the link, I'll take a look.

It's just hard to tell if i've actually been charged it or not, the statement doesn't make it clear and doesnt include an explanation of what it was for or anything, but looks like a charge made to the untrained eye.

dippy-dora_2

Hi again, yes looks like it's not been a charge made, just telling me total cost if i pay off my mortgage now - they are hopeful lol