Is there anything we can do??

LEEK_2

In august 2008 we took out a mortgage with abbey national for 90,000.However since then and just recently my wifes illness and her giving up her job have made it difficult to pay the mortgage.so she applied to the local authority for housing on medical grounds for a suitable house due to her health,we now have been offerd a house and have recieved an offer on ours which is pretty poor to say the least but we have no choice to sell.we have accepted the offer and its now going through.Having looked at our mortgage redemption satement we have an early repayemtn charge of £2700?? Is there anyway of us avoiding this as we basically have no choice but to go into local authority housing due to finances/my wife giving up work due to her health?
It will leave us in negative equity,theres also a repayment fee of £225 and a cashback charge ??? of £250
Anyone have any ideas?
thankyou

powerwin

FYI regarding the cashback charge, my understanding is that you probably took out a cashback mortgage which gave you a cash bonus on taking out the mortgage, and they are now taking back some of that cash according to their T&Cs because of early mortgage redemption.

I don't see an easy way out of these charges because they would have been in the mortgage T&Cs, but maybe someone else here will have something to offer.

Rgds

LEEK_2

Thankyou for the reply,ill wait in hope someone can help.thankyou

captainhaggis

I would write to the lender if I were you. Officially you've no 'out' with this one. The fees make up a part of the agreement you have with the lender so there is no obligation on their part to let you out fee-free.

However, my mother was in a similar situation a few years ago with a British lender for a Spanish property and when she provided evidence of her recently diagnosed illness, they waived the 'exit' charges as a gesture of, well, some would call it good-will but I call it honourability, decency and absolute kindness.

Kudos to that lender.

powerwin

The other things I'm thinking of are possibly your wife overpaid tax if she was paying through PAYE - she would have been charged on the basis of 12 months employment, so if she stopped before the end of the tax year, she may be due a tax refund.

Then, are there any further tax reliefs available to her or you if you are caring for her.

Finally, a visit to the Citizens Advice Bureau may give you some more help.

Rgds

Radiantsoul

The bank might reduce some of the charges, can't hurt to ask. Generally banks will only do so if they have something to gain. So if their only option is to repossess then they would have legal costs to pay, etc.

Hmm_2

If affordability is an issue because you have other debts, it may be an idea to contact CCCS and look at whether an IVA would be an option. This way you get to stay in your home if you can afford the mortgage payments on one salary and have a minimum of £100 spare each month after all bills to pay towards any outstanding debts you have.