Advice needed on mortgage charge

jashel

Has anyone any advice/experience on the large redemption charge when closing a mortgage as to how to reduce or contest it. Is it possible to do this. I am looking at over £4,000 just because I not so long ago switched from a variable to a fixed rate.--Thanks jashel

LisaT186

Unfortunately you signed up to the terms and conditions of the mortgage which meant a redemption period unless you held the mortgage for a set time.

Is there a particular reason you need to redeem? Are you moving house? Could you take the mortgage with you?

jashel

sell up and after paying off the mortgage and debts add the residue to a newly applied for mortgage when I find, or just before I find, a suitable house up in the Scottish Highlands. I value your advice on this..Regards jashel

cattie

If your mortgage is portable then you should be able to carry it over for a new property.

Other than that, the fee is something you would have been made aware of when you signed for the mortgage. On fixed rate or discounted mortgages the lender makes very little out of them, so there is usually an early redemption charge. If you knew you were going to be moving then it would have been better to have stuck with a variable rate untill after the move.

LisaT186

Are you in a position to sell and buy consecutively (or within about 3 months)? IE can you start looking now? That way you should be able to port your mortgage to the new property and have the redemption waived. You may need to pay part of it if you are reducing your mortgage but at least it won't be so much. Have a word with your lender and see what their terms and conditions are on porting. you can still use equity to pay off the other debts at the time of the move.