Paying off a fixed rate Mortgage

bankers_meal_ticket

Can anyone help? We are moving house Aug 1st 2011 and our present mortgage supplier (Chelsea BS) want £3500 as our fixed rate mortgage does not run out until Sept 2011. Bad planning on our part but is there anithing to do to avoid this greedy fee??
Thanks

Thrugelmir

bankers_meal_ticket wrote: »

but is there anithing to do to avoid this greedy fee??

No, you only have yourselves to blame. Fixed terms mortgages are called that for a reason. You can't have flexibility and security.

wilkies5

Maybe I am not understanding the whole picture, but can't you transfer your new purchase 'onto' your fixed mortgage....they'll be happy to lend you more! Or for longer? Alternatively have a second loan tagged on (an 01 a/c and then an 02 a/c), with the same lender.
We did this with Cheltenham & Gloucester.
Go into a local branch and discuss this with the Manager, face to face. It is a problem being tied into fixed rates.

Good Luck

kai666

bankers_meal_ticket wrote: »

t is there anithing to do to avoid this greedy fee??
Thanks

You mean the fee that you agreed to when you signed on the dotted line?

hillcats

I very much doubt you'll be able to wriggle out of it.
As others have already stated, you agreed to this when you accepted your current mortgage and you really
should have checked your supplied agreement paperwork BEFORE you decided to sell to move... like you say
yourself - bad planning...

kingstreet

bankers_meal_ticket wrote: »

Can anyone help? We are moving house Aug 1st 2011 and our present mortgage supplier (Chelsea BS) want £3500 as our fixed rate mortgage does not run out until Sept 2011. Bad planning on our part but is there anithing to do to avoid this greedy fee??
Thanks

Take your new mortgage with Chelsea and "port" the existing product to the new mortgage.

Failing that, ask your buyer to wait until the penalty ends and offer them a grand to wait for a month.

getmore4less

Alternative to porting
Change completion dates.

you have upto £3500 to sweeten the deal for the other side

That would cover storage and a hotel/holiday

ic

As above, talk with Chelsea about porting your existing mortgage - though I guess you've already applied through somebody else? In which case asking your seller and buyers to wait is probably the only option.

As I see it:

1. Delay the move by a month.
2. Cancel any existing mortgage application with another lender and get Chelsea to port the existing mortgage.
3. Pay the fee to Chelsea.
4. Bridging loan? (probably equally expensive)

poacherp

kingstreet wrote: »

Take your new mortgage with Chelsea and "port" the existing product to the new mortgage.

Failing that, ask your buyer to wait until the penalty ends and offer them a grand to wait for a month.

getmore4less wrote: »

Alternative to porting
Change completion dates.

you have upto £3500 to sweeten the deal for the other side

That would cover storage and a hotel/holiday

The above responses are more helpful than that of an earlier poster!

Sponge

Agreed. Why people can't provide advice without resorting to what are in effect insults, never ceases to amaze me. I'm glad I'll never meet those people in real life.

Morgage_Confused

this was in response to earlier posts as i haddnt refreshed page for a good few hours!

Now Im mighty baffled......so you are saying that if you have a fixed rate mortgage then you cant move house during the fix period without incurring a penalty?
Surely thats not correct. Fair enough if you wanted out of the mortgage to borrow elsewhere but not for simply moving house?