Redemption Fee

pollyanna24

I'm way way off anywhere near getting rid of my mortgage, 35 years away!

Just wondered, this £90 that it costs to redeem a mortgage, is this only if you finish the mortgage early, i.e. I had to pay it when I sold my first house, but still had £98K left on the mortgage. If I let the mortgage run the full 35 years, is this fee waived?

Completely random question sorry, but just wondered.

BigDunc

That certainly applies to my Halifax mortgage i.e. I only pay if I leave early. I got my annual statement through this week, your £90 is a bargain :rolleyes: , mine is more like £250.

MarkyMarkD

It depends on the lender whether it applies to all redemptions or just early ones.

fatfreemummy

i would say that if your mortgae runs to its full term then the early redemption fee will not be applicable.It will only be payable if you pay the mortgage early.These fees are also waived in other circumstances e.g porting your product or if you increase the debt.£90 seems pretty good.All these conditions should be in your terms and conditions leaflet.

MarkyMarkD

I don't agree with you, ffm.

It isn't necessarily an "early redemption fee". Sometimes it's just a "redemption administration charge" and may therefore be charged in the event of redemption at the end of the term.

Porting also doesn't seem a necessary reason for it to be waived and I don't believe that all lenders will waive in these circumstances. People port because they have to, in almost all circumstances, rather than because they want to and they aren't doing the lender a favour by doing so. So why should the fee be waived?

pollyanna24

Thanks for all the replies. I don't know if it's something that will be changed. I know it's what I got charged last year when I discharged my mortgage with Nationwide.

Started a new mortgage this year and just wondered. Thanks.