Charges!

begbeer

In May we took out an interest only mortgage with GMAC_RFC, with the intention of paying lump sum repayments when our finances allowed us to. We could pay upto 25% of the balance each year with no penalties. We also wanted to keep our monthly payments the same, hopefully reducing the time of our mortgage.
GMAC then sold our mortgage to North Yorkshire Mortgages Limited who have informed us that in future all lump sum repayments will be subject to a £50 administration charge,
Has anyone else come accross this and if so what did they do.

begbeer

Has no one replied because I have the only building society who charges for capital repayments?

dwsjarcmcd

begbeer,
Can't answer the question but I can tell you that North Yorkshire Mortgages Ltd are not a building society. In fact I have never heard of them and a quick google search doesn't reveal anything

begbeer

They are a subsidary of Scarbourough building society

dwight-van-man

Hiya, GMAC are quite good at selling on portions of their mortgage book to other lenders but I was always under the impression that if this happened, the 'new' lender was bound by the terms and conditions of the original GMAC offer, as are the clients. Would be worth digging out your offer papers and checking the terms stated for capital repayments, although if it states they are permitted but doesn't specify any admin cost, that might be North Yorkshires get out clause, ie, it doesn't specify that overpayments were free of charge, thereby implying that a charge could be made..... I guess your best bet would be a strongly worded letter to both GMAC and North Yorkshire....