Paying off a fixed rate Mortgage

MacMickster

Morgage_Confused wrote: »

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?

Some mortgages are portableand can be transferred (with the lender's permission) to the new property.

If, however, the mortgage is not portable, or the lender refuses permission then the redemption fees still apply, regardless of the reason for redemption.

poacherp

Morgage_Confused wrote: »

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?

If you have a fixed rate and you are currently still within the initial period (say 5 years) and you move house, there is generally a penalty - typically 3% of the balance. However, subject to the terms and conditions, you can 'port' the deal to the new property as a means of avoiding the penalty. You generally have to borrow the same amount or more. There may/may not be an admin charge.

To come back to the original post, it would in this instance make sense to delay completion until September when the 'tie-in' expires as there is only 1 month left on the penalty.

Evilm

Morgage_Confused wrote: »

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?

You agreed to a deal that you got a special rate as long as you stayed with it for the fixed period. It doesn't matter why you are breaking this deal but you are breaking it. The redemption penalty for doing so would have been spelled out to you on taking out the deal. The mortgage company sticking to those terms is not "greedy".

As everyone else has said if you delay completion for 1 month you have over £3k to convince people to hold on and complete in September.

AMILLIONDOLLARS

As someone has already suggested see if your seller can wait until the end of September to complete, £1K might do the trick.

AMD

sabretoothtigger

Get a bridging loan and hold both houses for a month.


For the sake of 30 days I'd expect the bank charging that fee to be willing to negotiate on it otherwise yea they are profiteering slightly.
For a fixed mortgage they'll have a corresponding fixed funds allocated themselves and the fee covers any dealing on that I guess so it might just be they are too lazy to bother juggling things over 30 days.
Probably best to send a letter because front line staff are likely to be of 'computer says no' mindset regardless of 30 or 300 days