Mortgage Early Redemption charges

pollyanna24

I had to pay £90 when I sold my house last year which I guess was to shut down the mortgage. Me and bf waited until we were just out of the two year fixed rate to avoid paying the early redemption penalty thing (if that's what it's called).

Surely if we all fight to get our money back if we decide to break a fixed rate mortgage and win, then the banks will stop doing these kind of fixed mortgage which really are the best kind of mortgage for a lot of people?

You sign into a fixed rate for a reason, to get the best deal. What will the banks have to gain if they haven't got the security of knowing you're going to be with them X number of years?

Or am I missing something? I know I'm not an expert.

pollyanna24

I'm posting re a message that was on here yesterday about reclaiming redemption monies. I'm not sure if it relates to completely closing down the mortgage or trying to get out of a fixed rate.

Are there people trying to claim back monies when they tried to get out of a fixed rate?

Surely if we all fight to get our money back if we decide to break a fixed rate mortgage and win, then the banks will stop doing these kind of fixed mortgage which really are the best kind of mortgage for a lot of people?

You sign into a fixed rate for a reason, to get the best deal. What will the banks have to gain if they haven't got the security of knowing you're going to be with them X number of years?

Or am I missing something? I know I'm not an expert.

furndire

Some people have and others are reclaiming Early Redemption Charges. These are the penalties that people get when they pay off their mortgages early - which can mount to thousands of pounds.
The brokers who were answering, stated that it could not be done, however, if you go to https://www.Consumeractiongroup.co.uk, and search for ERC, you will find there are people who have already reclaimed these charges, and others who are in the middle of reclaiming. It seems to be a slow process at the moment, but it is happening.
http://forums.moneysavingexpert.com/showthread.html?t=301846&highlight=Lizzy

pollyanna24

Thanks. I 've just found a thread on the mortgages board about this. Not that my twopennysworth is worth much, but I think people should be forced to pay this charges.

They took the mortgage, should have read the details etc etc. I'm not made of money and we just had to wait till our fixed rate was up before we sold.

Martyn_H

Just to be clear, my variable-rate mortgage is due to be paid off at the end of its term.

nollag2006

Hello all

Just reading this approach to recouping punitive bank charges, and it raises the question "Does it apply to mortgage redemption penalties ?"

In 2003, I redeemed my mortgage two weeks before the redemption penalties expired. I wrote to Mortgage Express and then to the Ombudsman protesting that the £2k redemption penalty was excessive, to no avail.

Two questions from this, really:
(1) Are exhorbitant mortgage redemption penalties covered under this?
(2) Does the fact that the Ombudsman has already adjudicated on this prevent me from complaining again ?

Red_Panda_2

There are people claiming on mortgage redemption charges at the moment, have a look on https://www.consumeractiongroup.co.uk its well worth signing up there and having a look around.
Go to the other institutions forum and there is a section for mortgages, they are very helpful, I am about to start on an old mortgage.

Tracy_Reed

Is there any way that I can reclaim any early resettlement mortgage repayments. When I switched mortgage last year it cost me 11 000. Any advice appreciated.

Edinburghlass_2

Hi Tracy, I've merged your post into this thread and if you read back you'll find previous posts about mortgage agreements.

andrew2003

can i reclaim charges impossed by my mortgage company for late payments, solictor charges and charges for not paying by DD.