Help Wanted With Re Mortgage Problem

winston1_2

I want to move within the next few months but am having problems with my mortgage. I am tied in for a few more years and just expected to re negotiate. I have now found out that the bank no longer offers new mortages. I can pay a large redemption penalty or re mortgage through their broker and pay a high percentage in broker fees. Can they do this? It feels like blackmail to me. Any suggestions?

Tom_Marinan

I am surprised that a broker can offer you the choice of either a large redemption penalty or broker fees, as the broker is not usually empowered with such a facility. How is the broker connected to the lender? Also, is this the same broker that sold you the mortgage in the first place, and if so did he ask you before you signed the contract if there was a possibility that you might move within the redemption term of the mortgage. Did he ask you if you required portability as a feature of the mortgage. All brokers are required to complete a fact find containing this information to ensure that the mortgege sold fills the needs identified in the fact find. If it does not then you may have a cause of action against the broker.

MarkyMarkD

WINSTON1 wrote:

I want to move within the next few months but am having problems with my mortgage. I am tied in for a few more years and just expected to re negotiate. I have now found out that the bank no longer offers new mortages. I can pay a large redemption penalty or re mortgage through their broker and pay a high percentage in broker fees. Can they do this? It feels like blackmail to me. Any suggestions?

It's not blackmail at all.

Virtually no lender will let you switch products WITHIN a penalty period, without making you pay the penalty.

If you thought you could "just renegotiate" during the tie in period, you were mistaken. That's the point of a tie in period!

Lump it and stick with your mortgage until the penalty runs out. (Unless the rate is such a rip-off that you can save money overall by switching to another deal without an extended tie in). THEN find a mortgage through a decent broker this time, or direct from another lender.

winston1_2

Thanks for the advice. When I got the original mortgage it was sold to me a portable. The bank no longer does new mortgages so if I want to move house and top my mortgage up I cannot do this with the existing lender (I think MarkyMarkD was a bit confused). I can avoid the penalties if I use their broker but have to pay the broker fees. I got the mortgage from an independent broker originally but if use them again I will have to pay the penalties.

payless

are you willing to name thge lender?

winston1_2

I Didn't Know If I Could...it's Bradford And Bingley