Early Mortgage Repayment

tina67

Hi! Can anyonehelp?

Had credit problems in the past and so had to take mortgage from mortgage lender and not High St bank.

It was sold to us by "independant mortgage advisor". We had a discounted variable rate for 3 years and were paying interest only. Initial amount was £128000. Just re-mortgaged and received early repayment figure...£134000.

The mortgage advisr led us to believe there would be no redemption fee afer the 3 year period...but we've had to pay 1%.............and we can't understand why we have had to paya total £6000 extra to this company in 3 years.

We contacted the mortgage lender for explanation. When we told them that we didn't really understand they replied that in fact it was difficult for them to explain the reasons as "complicated".

Any advise or who to contact would be most appreciated.

Tina67

silvercar

you've got £6,000 extra!

1% would be £1,280 so what is the rest?

Ask your original mortgage advisor for an explanation.

Possibilities:

Missed mortgage payments, payment holidays, life insurance, employment protection insurance, arrangement fee added to the mortgage at the start, home insurance.

If any of these things were added to the mortgage at the start they would incur interest during the running of the mortgage. do you remember the advisor saying don't worry about a fee, he'll arrange for it to be added to the mortgage?

tina67

Thanks for replying.

1% is £1,340. I remember him saying that if we wanted to get out BEFORE the 3 years were up we could find a way of getting around the early redemption fees.
We had a couple of late payments but they were always paid within 10 days of missed one.
Yes the advisor did say that his fee would come from the mortgage amount. I havn't had time to go though all the paper work yet....we completd re-mortgage earlier today.

Cheers
Tina

silvercar

I don't understand, he said he could find a way round the redemption fees and then didn't, or you didn't go back to him?

there should have been a Key Facts sheet with the original mortgage offer detailing all the charges.

If I was guessing I would see there was a 3% arrangement fee added to the mortgage or something similar; don't see why the mortgage company couldn't have explained that. What does your mortgage advisor say?

UK007BullDog

Were the 3 years completely up or was there still a month to go?

Did out your old docs and let us know what it says regarding redemption fees.

Did you have to pay a Higher Lending Charge? An insurance to protect lender.

tina67

I used different advisor this time. But I will definately contact the previous one....although I'm sure he will be more than able to explain it away.

I'll be checking all the original paperwork over the weekend.

Thanks
Tina

tina67

3 years ended last month....we waited..

dwight-van-man

tina67 wrote:

3 years ended last month....we waited..

You might have waited three calander years from completion, but the product you took may have had a specific end date which meant that although it was labelled a three year fix, it may in fact have been three years two months. Should detail this on your paperwork. Hope you can find it all!