moving house, mortgage penalties

bs0u0128

im due to move and as such will pay back the mortgage in full from the sale of the house, which they will charge me around £3000 to do

is this challengeable like bank charges? or just the way it is? if it is challengeable how would one go about this?

many thanks

sportbeth

This is a new one on the bank charges format, a few people have fought the penalty and won, I'm going to look into ours at the new year.

There is a hefty area on https://www.consumeractiongroup.com that you can swot up on it with

matty2767

without knowing your mortgage details. i would say that if the charges were not in place when you signed up how can they be legally applied now?. if like with me they are essentially early repayment charges and i knew of them when signing the mortgage i suppose it is tough luck. my erc is currently £10k+ but i got a decent rate of interest and hoped i wouldnt settle within 5yrs.

Gingham_Ribbon

Hopefully you'll get more replies on this board so I've moved it over for you. Good luck.

regularsaver1

They would have been on the mortgage offer and your decision to move during the tie-in period

unless your mortgage is portable with current lender to new property?

dunstonh

Early redemption penalties are documented on your mortgage offer letter and would have been fully shown before you signed it. If you used a solicitor to review the offer letter (which is usually the best way but some dont bother to save a few pounds) then the solicitor would have pointed these terms out to you before you signed the contract.

As you knew about the charges before signing the contract then you cannot claim unfair charges. Many providers do allow the mortgage to be ported to the new property though and you should investigate this if you are buying another property.

edit: RS just beat me to it.

Trying_to_be_good

What about the sealing fees? When I took my mortgage out it was (I think) £75 but when I redeemed the mortgage (to move house) it had increased to about £150 on the draft redemtpion statement and then £225 by the time of completion - can these be challenged?

pollyanna24

I know a lot of people have started challenging these fees, and personally I hope they lose.

I've signed up to a fixed rate mortgage because I like the security of knowing what my payments are. Presumably you did the same thing. If everyone starts challenging these fees and winning, these mortgages (which are the best sort for a lot of people) will be withdrawn off the market and we will all be stuck on SVR.

david29dpo

pollyanna24 wrote:

I know a lot of people have started challenging these fees, and personally I hope they lose.

I've signed up to a fixed rate mortgage because I like the security of knowing what my payments are. Presumably you did the same thing. If everyone starts challenging these fees and winning, these mortgages (which are the best sort for a lot of people) will be withdrawn off the market and we will all be stuck on SVR.

well said!