How do you pay the redemption fee?

carl310166

We have a mortgage with the Chelsea BS, but we are tied until Dec 2008, unless we pay the redemption fee of about £2500.

If we did decide to change to another lender now, would i have to pay the £2500 in cash, or would it be added to the new borrowing?

We are almost? in a position to overpay the mortgage by 100%, so i am trying to work out if it will be cheaper for us to pay the redempton fee and change lenders in the next few months or wait and save until 2008, then pay off a lump sum when we change then?

Does that make sense? any thoughts.

herbiesjp

You can do it either way

Either pay a cash sum to the lender to pay the fee or add this £2500 onto the mortgage amount when you moved lender, and the the solicitor doing the legal side would forward those funds to the Chelsea to pay the fee

HTH

carl310166

herbiesjp wrote:

You can do it either way

Either pay a cash sum to the lender to pay the fee or add this £2500 onto the mortgage amount when you moved lender, and the the solicitor doing the legal side would forward those funds to the Chelsea to pay the fee

HTH

Thanks for the prompt reply, just the answer i was looking for!