Payment advise

simmmy_2

Hi all ... I have just received my annual statement from Skipton (spit) and I can now not only see the light but feel the heat generated from it.

I (according to my statement) have 6 months left to pay and owe or owed at the 31st December £1856.62.

I paid on the 1st of Jan £461.50 so this should bring my present balance to £1395.12 with 5 months to go.

Now continuing to pay this £461.50 a month I should have a mortgage balance of £10.62 in three more payments.

My question is, will I get hit more redemption charges of £125.00 and early repayment charges of £18.56 that is stated on my statement?

I have never overpaid on the mortgage only paying what I have been required to pay.

Thanks

kingstreet

There's probably a fee to close your account when you finally repay the mortgage. These range from £0 to £275 in my recent experience. Is this the £125 you refer to?

Early repayment charges? Are you in some kind of fix or other special offer?

simmmy_2

kingstreet wrote: »

There's probably a fee to close your account when you finally repay the mortgage. These range from £0 to £275 in my recent experience. Is this the £125 you refer to?

Early repayment charges? Are you in some kind of fix or other special offer?

No the £125 is stated as "Redemption Admin Fee".

I opened the account 10 years ago with the Scarborough BS which sold out to Skipton , i did have a special offer that tied me in for 10 years.

kingstreet

So you've been charged this £125 already? Redemption admin fee is a bit woolly, TBH. If it's at the end it's normally described as a "deeds release fee" or something similar.

kingstreet

According to the Skipton site, the Redemption Admin Fee of £125;-

This fee is for dealing with the whole administration
process on redemption from issuing the redemption
statement (and any subsequent statements), dealing
with any queries, dealing with the receipt of the
redemption monies and ultimately registering the
discharge with the Land Registry or sealing where
necessary. This fee will not be payable if your
mortgage naturally reaches the end of its term, if your
deeds are held under the Mortgage Membership
Service with a minimum balance on the mortgage
account or if the property is sold in possession. Any
fees charged by a third party relating to the discharge
are not included in this fee.

simmmy_2

kingstreet wrote: »

So you've been charged this £125 already? Redemption admin fee is a bit woolly, TBH. If it's at the end it's normally described as a "deeds release fee" or something similar.

It's OK found this >>

Redemption Admin Fee

This fee is for dealing with the whole admin process on redemption from issuing the redemption statement (and any subsequent statements) dealing with any queries, dealing with the receipt of the redemption monies and ultimately registering the discharge with the land registery or sealing where necessary. The fee will not be payable if your martgage naturally reaches the end of the term , if your deads are held under the mortgage membership service with a minimum balance on the mortgage account or if the mortgage is sold in possesion.

So going to call them and hopefully rearrange the balance over the 5 remaining months if need to. I just do'nt want any of my money in credit with this firm.

Thanks.

kingstreet

Ok.

So defer any future overpayments until the fix ends and it's no longer going to cost you a penalty. Save the money in preparation.

At the end of the mortgage term, the £125 is a one-off cost to close your account as I said in post #2.