redemption administration charge

Hi All,
I’m a very long term forum reader, who has finally registered to ask a question if I may.
I want to be ‘mortgage free’, and have been overpaying on my 25 year mortgage for number of years. The mortgage has a term left of just over 5 years, however with the overpayments this has been reduced to about 20 months left to run.
I have requested and recieved a redemption figure from my building society, which includes a “redemption administration charge”. Is there likely to be anyway that I can get this charge reduced or removed from the final settlement?
Thanks.
Once a Seagull always a Seagull - Bruno

Replies

  • How much is it? I can remember every time I changed mortgages I'd be charged a fee of about £60 in administration, but it should be mentioned in the original T&C when you agreed to the mortgage.
    Mortgage overpayments since November 08: £32,500 - balance is now £81,200
    On a Lifetime tracker +0.38% repayment mortgage
    Hope to be Mortgage free by 2015! (or maybe 2014 if the rates stay low.....)
  • edited 28 August 2009 at 10:26AM
    ggmfggmf Forumite
    129 Posts
    Part of the Furniture 100 Posts Name Dropper Photogenic
    edited 28 August 2009 at 10:26AM
    Thanks for the reply, to be honest it's not a lot, £200, but then I calculated how much I have already paid them back, above the original loan amount :eek: , and yes I know they need to make a profit, pay shareholders etc. I'd rather keep as much of my money in my pocket if I can. I'd like to clear whats left in case interest rates start to go back up again.
    Once a Seagull always a Seagull - Bruno
  • co123456co123456 Forumite
    368 Posts
    Mortgage-free Glee!
    Everthing is negotiable (except my fee).

    It's possible to have this waived, however the chances are extremely low. If you like a challenge, go for it. I would say you have a 0.5% chance of winning so you need to weigh up whether it's worth the effort, or whether there are other ways of making £200 to cover the cost.
  • RedBernRedBern Forumite
    1.2K Posts
    in a similar position with A&L, they've quoted £396.86 early redemption fee (30 months early) and £295 redemption administration charge which seems a little excessive!
    Bern :j
  • ggmfggmf Forumite
    129 Posts
    Part of the Furniture 100 Posts Name Dropper Photogenic
    It would appear that in our case, paying the increased monthly payments as we had been doing over a number of years, or paying off the remaining balance now, saddled us with the redemption charge.
    We had 2 options: Clear the outstanding balance and pay the redemption charge, or reduce the outstanding balance to a minimum allowed balance, and then settle over the full term of the original agreement, if we continued with increased monthly payments, we would still have been hit with a redemption charge. As such we have decided to clear the mortgage and pay the redemption charge.
    RedBern - It’s interesting that you mention A&L, we had moved most savings to other providers, now the mortgage has gone, this leaves us with an ISA with them, which I will look to transfer to another provider as soon as I can.
    Once a Seagull always a Seagull - Bruno
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