Mortgage exit fee

mandw23

Hi just a query me and my partner recently split up and are in process of selling my house. On your web you have that to keep mortgage open so do not get charged a fee. How does this work? Solicitor takes there fee and estate agent takes theres. Then the money goes into bank so does the bank take it all which would mean my mortgage would be paid off but because i am fixed for four years i will be charged £4500 can anyone help or advise me please?

seabright

If you are on a fixed rate deal you will be charged an exit fee if you redeem the mortgage totally. Often you can pay off 10% per year without a fee, but no more than that.

Will you be buying elsewhere? If so, you may be able to transfer the mortgage to your new property and avoid paying the fee that way, but your mortgagee would have to agree to both the transfer to a new property and the transfer into your sole name.

If you are buying elsewhere and want to do this, approach them quickly, before the sale gets too near completion as it can take a while to set up.

mandw23

seabright wrote: »

If you are on a fixed rate deal you will be charged an exit fee if you redeem the mortgage totally. Often you can pay off 10% per year without a fee, but no more than that.

Will you be buying elsewhere? If so, you may be able to transfer the mortgage to your new property and avoid paying the fee that way, but your mortgagee would have to agree to both the transfer to a new property and the transfer into your sole name.

If you are buying elsewhere and want to do this, approach them quickly, before the sale gets too near completion as it can take a while to set up.

Hi no i will be living with my parents just now. I just wondered if rather than taking a loan to pay debt at the end this would be possible. As Martin says you can leave mortgage open with a small amount on so you do not have to pay the fee. I was only in my house a year and me and my ex seperated. So i'm looking at everything to not get into too much debt or have smaller payments. An my house is only just on sale not sold yet can anyone help please any advice would be great!!!

ViolaLass

mandw23 wrote: »

As Martin says you can leave mortgage open with a small amount on so you do not have to pay the fee.

Yes, but you can't have a mortgage if you don't have a house!

SmlSave

ViolaLass is right mandw23, you can't have a mortgage when you don't have a house.

When you sell your house the solicitors will pay their fees, the estate agents and the mortgage out of the funds before you and your ex-partner get anything

Harry_Powell

The advice about keeping a little bit remaining on the mortgage is for people who have paid off most of the mortgage on their home, not for people who have sold their house and have paid off their mortgage with the proceeds.

Is there no way you can stay in your house, perhaps rent a room (or two) out, at least until you are out of the fixed period. You'd certainly save yourself £4500 and if the housing market recovery continues you could sell and end up with a decent profit.