Mortgage Companies Ripping People Off? (Lost 7K)

Zaine_UK

Hello all,

Does this sound right to you. My girlfriend had a £140k interest free mortgage with The Mortgage Works. She had it for 2 years and paid it off to go with someone else. (HSBC) She had to pay £7K! (Early re-payment fee) Is this correct or just a bad dream? Seems really high?

Thanks for your advice.

babyharry5

interest free mortgage??:cool:

Early redemption charges are etremely common and you can often pay an awful lot of money to redeem the account early.

Would suggest she check the mortgage documents which will clearly show the redemption penalties that would be incurred

Leon_W

Yes that is correct.

Who advised her to switch ? Unless it was a very long fix at quite a high rate for a largish amount of money then generally it isn't worth switching.