Redemption penalty mistake ?

sconieroany

I was sure I had a redemption on the mortgage with my building society until next year, but on enquiring this week an adviser told me I had no tie in remaining, she is going to sent this in writing, my question is if I remortgage now and they change their mind and want a early redemption charge, where do I stand ? do I need a redemption statement first before sending off my remortgage application ?

lisyloo

do I need a redemption statement first before sending off my remortgage application ?

No.

Do you have the mortgage offer? Can you check the original paperwork?
If not I would advise keeping this kind of important paperwork in future.

Double-check with them a few times, note down dates, times and names of people you spoke to (if phoning).

If after that there is a mistake then I think you would have very good grounds for a complaint and getting your money back.

MarkyMarkD

There's no point NOT getting a redemption statement before putting the wheels in motion, as it will avoid any doubt and they will definitely have to stand by a redemption statement whereas they might not do if you just get duff advice from one of their staff.

Does your latest annual mortgage statement not show the redemption value - mine from YBS does so, and I think it's a new FSA or Banking Code requirement for them to do so.

lisyloo

There's no point NOT getting a redemption statement before putting the wheels in motion

Make sure you know the charge first in getting an additional statement.
Usually lenders charge for this.
Personaly I wouldn't want to pay extra just to cover someone's incompetance.

Try and dig out the paperwork first to save yourself some cash.

MarkyMarkD

I've never known a redemption statement to be charged for.

ronnie_2

As mentioned above, if you still have your original "offer" and "completion" papers check them first as ercs will be shown there. If then you are still unsure, then arrange for them to send a redemption fiq out to you which will deffo show if you have any erc charges. If both these avenues show that no fees are payable as a last check inform your solicitor that when they request a redemption fiq to make sure theres no additional fees listed.

If at the end your bank or bsc tell you that additional fees are due then highlight the previous correspondence that you have and they will roll over and delete all charges.