£11,000 tie in fee - HELP!!

nick1jt

Hello.. first post.

Back in 2007 I was on variable and my payments went up a few times and I got scared.

So I fixed for as long as I could. 7 years at 6%. OUCH and double OUCH

My deal expires Nov 2014.

However in 2012 we intend to sell up and move to australia. I have been advised I will need to pay a fee of £11,000 to exit early.

Is there any way I can avoid this or get out of it?



Thank you


Nick

Crashandburn

err doubt it!

Lender will want its blood for doing a 7 year deal. Does the option of letting the property for 2 more years come into your equation if it saves your £11k???

nick1jt

thanks for reply... no we need the equity to go!!

eschaton

nick1jt wrote: »

thanks for reply... no we need the equity to go!!

You will be £11k down then.

cathh70

Who is the mortgage with? If NRAM you might be lucky as they have just waived their ERCs. Otherwise probably not.

nick1jt

no its with santander

ryan86uk

nick1jt wrote: »

no its with santander

Santander again!! :eek:

dimbo61

Does the ERC reduce the longer you have the mortgage IE 5% in first year,4% year 2/3, 3% year 4/5, and 2% year 6/7 ?
Could you talk to santander mortgage centre

betmunch

ryan86uk wrote: »

Santander again!! :eek:

I know they are a pain, but they are not out of line on this occasion I'm afraid.

Gorgeous_George

You could move to Australia two years later.

If the fee is the same whether you repay today or in 2014, you could sell up and avoid losing potentially much more with house price falls - but you'd need to rent until you go.

How much equity do you need for the move? There may not be any after a few more years of the Condems.

GG

dunstonh

My deal expires Nov 2014.

However in 2012 we intend to sell up and move to australia. I have been advised I will need to pay a fee of £11,000 to exit early.

Is there any way I can avoid this or get out of it?

What made you buy a deal with a tie in if you knew you could not go to the end of the tie in? If you didnt know about the move at the time then either you accept the consequences and pay the £11k or you delay the decision. If you did know about the move and you used an adviser and told them about the move then you may have a case against them to pay it for you. If you knew and didnt use an adviser then its your own fault.