NEW Mortgage Exit Fees Discussion

Courtmill

Thanks everyone

It makes it much easier now I understand why I'm coughing up so much money the first month.

The joys of being a newbie

dentonemma

Hi,

I understand that mortgage exit fee is different from early redemption penalties. I have just claimed for a mortgage exit fee from 1996 and received a cheque for £89. Is there anyway I can claim back any of the early redemption charge, I think it was approx £2000 back in Jan 1996. I was in an 10 year fixed rate and left after 2 years.

Cheers

dunstonh

dentonemma wrote: »

Hi,

I understand that mortgage exit fee is different from early redemption penalties. I have just claimed for a mortgage exit fee from 1996 and received a cheque for £89. Is there anyway I can claim back any of the early redemption charge, I think it was approx £2000 back in Jan 1996. I was in an 10 year fixed rate and left after 2 years.

Cheers

No you cant. ERCs are considered fair and legal and are there for a damned good reason.

pbmbe2010

I foolishly signed up for a 5.9 percent fixed rate on a 102,000 mortgage back in April 2008.

I will then be released from this in March 2011 to go on a tracker at 1% above the BOE base rate.

Is there any way out of this now to save a substantial sum of money?

Also, even though the signed contract stated that I would pay 1% above the base rate on this deal when it ended - can the bank decide not to honour that?

_Andy_

pbmbe2010 wrote: »

I foolishly signed up for a 5.9 percent fixed rate on a 102,000 mortgage back in April 2008.

I will then be released from this in March 2011 to go on a tracker at 1% above the BOE base rate.

Is there any way out of this now to save a substantial sum of money?

Nothing foolish about it.
In answer to your question - yes if you're willing to pay the early repayment charges, which would probably make it not worth your while. Unless you want to massively increase your mortgage debt just to save a bit of money each month.

MarkyMarkD

And by exiting the fix, you will lose the benefit of a very competitive revert rate. You would be bonkers to remortgage elsewhere, IMHO.

nicole61

Hello Everyone,


I'm Nicole Anderson and am new to this forum. it's good to hear that we can reclaim the amount of mortgage by filing a case. Do u think it's really possible?
Please clarify my doubt.

____________________________________________________________

dunstonh

nicole61 wrote: »

Hello Everyone,


I'm Nicole Anderson and am new to this forum. it's good to hear that we can reclaim the amount of mortgage by filing a case. Do u think it's really possible?
Please clarify my doubt.

____________________________________________________________

There is virtually no chance of getting a mortgage repaid.

eye4abargain2010

I went into a 5yr / 5.98% FR in Sep 2008 on a relatively small interest only mortgage of £36k-ish. Current ERC is £1053 (3%). I asked them if I could exit and pay ERC and get another product - NO ! ??

Surprised, I went browsing for a new deal - HSBC 2.19% variable for term of mortgage - NO ERC and NO Exit Fees with a £99 arrangement fee.

My endowments pay out in 4yrs.

Doing my sums I can save £105/month = £1200+ per year, son in the first year my ERC is covered.

I like the idea there is no ERC and Exit Fees and I can pay added deposits to reduce the loan whenver I want.

Do you think this is a good deal??? - VIRGIN posting so be gentle.

MarkyMarkD

Hi and welcome.

Yes, it's a good deal. Not necessarily the best available but you will save money under most sensible interest rate scenarios.

The reason the deal works is that Nationwide are losing a lot of money by letting you exit at 3% when they are going to lose roughly that amount for each of the remaining 3 years. That's why they won't make it easy for you to get out of the product - and letting you switch to another of their products would certainly make it easy for you and so isn't allowed by them or most other providers in this situation.

Having said that, I don't think Nationwide would come close to 2.19% variable in any case.

You haven't mentioned valuation or legal fees, which I presume you'd have to pay to HSBC/a solicitor. Maybe around £500+?