Early Repayment Fee on Portable mortgage??

catliz

Hi all

I am ready to complete on sale/purchase of house and my solicitor has got a redemption statement from my mortgage company. My mortgage was portable so I am moving the producto over and keeping the borrowing the same which I thought stopped me from hitting any early redemption fees, however they have charged me £200, which is less the the £2000 it would be if I changed mortgage but I still don;t understand why they have added it, is it right or are they trying it on?? I have to pay on completion.

Cat

kingstreet

Are you sure it's an early repayment penalty and not the account closure/discharge fee which applies when you repay the mortgage?

See S8 of your original key facts illustration or original mortgage offer.

Porting is transferring the rate from your old mortgage to a new one. You aren't transferring a mortgage, so there is a physical ending, and starting again, taking place under a new mortgage account number.

catliz

No theres an admin fee of £245 to pay too which I presume is the account closure fee but I can add this on the mortgage.

kingstreet

Can't provide an explanation then, I'm afraid. All I can suggest is you contact the lender concerned.

Thrugelmir

catliz wrote: »

No theres an admin fee of £245 to pay too which I presume is the account closure fee but I can add this on the mortgage.

You'll be charged a mortgage redemption fee. Standard charge.

kingstreet

catliz wrote: »

No theres an admin fee of £245 to pay too which I presume is the account closure fee but I can add this on the mortgage.

Are you sure that isn't the account fee for the new mortgage? The account fee for the old mortgage is more likely to form part of the redemption figure for when it's to be repaid.