Is it worth the redemption penalty?

vivaladiva

Hi all
I'm hoping there is a financial genius out there that can help me with some figures.
I have been considering switching to a One account, but would have to pay a redemption penalty on both the mortgate and the consolidation loan. The current rates of interest are Mortgage 5.04% and Consolidation 6.9% :eek:
I would have to pay £1500 redemtion on the mortgage and £3000 on the consolidation loan. Both loans have a long time to run so would I be better off paying the redemtion and getting a better interest rate or should I stick it out? - the redemtion on the morgage finishes Nov 2007.
Incidentally when I took out the consolidation load I specifically asked for no redemption penalty :mad: - have I any comeback on this?
Sorry to be so long winded but I got there in the end.

lynzpower

You may find those redemption penalties are illegal, and there is a growing number of people claiming them back -here https://www.consumeractiongroup.com/forum

Good luck

Toto

WOW really? I paid 6k in redemption penalty 2 years ago and I am looking at paying another 3k when I sell my house. It would be fantastic if I could claim that back!!! What do I do?

I can only find info on claiming back bank charges for unpaid items and going overdrawn etc.. Do mortgage redemption penalty claims follow the same format? I do think these redemption things are a total rip off.

To answer your question bizzi, it is worth the fee if you are going to pay less in the long run. The extra saving on your interest should cover the fee in no time but i still think these fees suck.