Yearly mortgage statement Early Repayment Charge Missing???

scottysaver

We recently received our yearly statement through from the Woolwich and were shocked to see the Early Repayment Charge was termed N/A. As this was a 10 year fixed deal at a higher rate, it meant the full repayment was approximately £5500 less.

Due to this, we have looked into remortgaging and can obviously get much better deals now.

To double check it was not an oversight on their part, I phoned up and asked for a current mortgage valuation statement to pay off the mortgage now. The paperwork we received also did not include the Early Repayment Charge.

We have two letters stating the redemption value, so I phoned again to confirm the settlement fees etc, and the chap initially agreed that the only fee to pay was the final repayment charge of £275. He then hesitated and said " There seems to be a mistake as this is a fixed deal there should be an Early Repayment Charge due??" They are now looking into it as it is not showing on their system.

Where do we stand, and do we have a case to not pay the Early Repayment Charge??

Any help/advice would be much appreciated as it could mean a big difference to our monthly outgoings and potential remortgage.

dunstonh

Where do we stand, and do we have a case to not pay the Early Repayment Charge??

Depends on what your contract says. The statement is irrelevant. The contract is the key document.

scottysaver

The deal was fixed for 10 years and we still have 8 years left on it. The early repayment charge is 6% of the outstanding balance until the term ends, but the rate is 5.59%.

I think we are going to have to pay the charge if we want to remortgage, but unsure whether it is worth it to get a lower rate. 2.65% is available to us??

opinions4u

Buying a 5.59% mortgage fixed for 8 years with no set up fees?

I'd consider it an option.

Give real thought to staying on exactly the product you've got. You took it for a reason and those reasons probably haven't changed.