fixed rate fees and selling

robbies_gal

hi all new to this part of the boards

im asking for my sister

she wants to sell her house has split from her husband

they have a fixed rate fee on their mortgage that doesnt end until julythis year

shes just had an agent round who said in the past hes been able to get the mortgage company to waive the fee

it sounds really suspect to me-i mean why would they waive it for an estate agent?

shes already asked them they said if she completes before july the fee still stands

also this agent has adivsed her to put her house up for lower than wot another agent said to get people in but if she does that she loses out on profit

any advice thanks

Emmzi

get the agent to get the fee waiver in writing from the bank. Otherwise he's lying.

Old_Git

Its a buyers market so how long will it take your sister to finder a buyer .
If she finds a buyer now I wouldnt complete until August 1th

robbies_gal

it doesnt take longer than 12 weeks usually does it? thats only 3 months away

thats what i mean emmzi does this even happen why should an agent be able to get the bank to waive a fee?

cattie

Only a really good, absolutely fantastical magician could get a lender to waive the penalty charge!

Regarding the price, you will often get one EA valuing at a higher price than another EA. This doesn't mean the house will sell at the higher price. When selling, you need to be realistic, check the market yourself, see what similar properties are up for & what the sold prices were. This gives you an idea of what would be a realistic valuation & selling price. Most decent agents will advise you of the marketing price & the expected achievable price, usually 2 completely different things in todays housing market. Also, you need to factor in the EA's commision, sometimes one EA will want a higher % than an other, which can leave you with less money in the purse after the sale.

robbies_gal

thanks cattie(cute pic btw)

i didnt think he couldn i really dont know what his game is obviously want to get her to sign with him but how will it benefit him in the long run if she has to put the price up coz he said he can get the fee waived and it takes twice as long to sell

also do u have to stay with the same agent until you sell ive heard of people switching and then being charged for it

Emmzi

no, fee waiving for that size of fee never happens. What's in it for the bank?

Or it didn't when I was the bank manager. an that's back in the day when we were really liberal about things.

robbies_gal

no didnt think so think it comes in at around 8k-i mean why wold the bank even consider it

i just have to convince her now hes liying to get her to sign up with him-sorry to estate agents but i dont trust them as far as i can throw them

betmunch

Some mortgage lenders were waving ERCs to get people off their books.

What I suspect is a seller was offered the ERC waiver and had to sell to pay back the loan, the EA knew they were selling for this reason so twisted what happened in his head to. They sold and I had the ERC waived for them, well done me!

There is no way and EA will get an ERC waived, and if he thinks he did then he is deluded and you should avoid him!

robbies_gal

thanks bet-he probably is trying to con her into thinking he can do this so she signs with him

really cant stand people like that-shes already asked the bank if theres anyway out of the erc and theyve said no

kingstreet

Which mortgage lender?

The agent is lying through his teeth but it's worth bearing in mind if it's a Bradford & Bingley, Mortgage Express or Northern Rock deal that are now handled by NRAM it may well be possible to escape penalty-free.

Similarly, Advantage, Morgan Stanley's old Uk lending business was offering
a reduction in the mortgage to leave early.

Bank of Ireland also has offers out to some to leave them without penalty, although this may be remortgage-only.

TBH it doesn't sound like there's anything in the offing from what the OP has said.