NEW Mortgage Exit Fees Discussion

queenkop

Hi I have just sold my house and intend to pay off my existing mortgage. I have been approved in branch for a new mortgage but it is now at the underwriters. They say I should hear in 48 hours. I am sooo worried:( that it will be declined. I have found my house and had the offer accepted. I have never missed a payment on my current mortgage and have been with the same company for the 12 years I have held a mortgage. Does it mean being sent to the underwriters with bank statements, wage slips and id that it will be declined. We have a 10k deposit????:eek:help I am going bonkers waiting

tonystyles

Not sure where I stand on this one.....
In Dec 2008 I arranged a new mortgage package fixed for 2 years. I have written confirmation dated 8-12-08. earlier this year I was made redundant and, although working again virtually straight away, my income was drastically reduced. To reduce outgoings we decided to sell the house and rent, saving about £500 a month. Anticipated completion will be mid to late December, over 2 years after the written confirmation. I have just found out that the redemption figure includes a £4300 fee for early settlement as the term is actually to Feb 11. Do I have any recourse on this as it is greater than the 2 years I signed up for. Obviously it's a sizable amount, that I cant really afford to lose, but by the same token I daren't risk losing the sale by delaying completion.

Any help or guidance would be greatly appreciated

Thanks
Tony

Thrugelmir

Was February the 11th, the date that you completed the purchase of your property on?

Mortgage offers are open for a period of time, i.e. until actual completion takes place. May may differ from the actual offer date.

MarkyMarkD

He means February 2011, not the 11th of February!

Very often fixed term mortgages are actually fixed end dated, e.g. to 28 February 2011, rather than for an actual period of two years.

It will be obvious from the KFI or similar whether it is actually two years or to 28 February 2011.

Austinxuflagg

I think that you are getting confused between the early redemption fee (what you have called an exit fee) and the release of deeds. This last is usually around £200 and is what you pay to get the deeds back when your mortgage is paid off.

_Andy_

Wil wrote: »

Anyone know if there are anyways in which to get out of early repayment charges?

We want to move out of our house ad into the in laws second home but dont want to fork out £5?? Any ideas??

The ERC is £5?

dunstonh

Anyone know if there are anyways in which to get out of early repayment charges?

Death is the main one. Apart from that, usually the answer is no.

HardSpend

is there a minimum you can leave on your mortgage to pay off? e.g. can I just leave £1 in my mortgage which has 7 years to run on variable rate, will I end up just paying £1+interest off for 7 years? I think not but am unsure what the minimum actually is?

Don't really want to pay £195 exit fee (lending fee) from Bank of Ireland earlier than I have to

MarkyMarkD

Normally no minimum, or might be £1. But this is conditional on you remaining in the house, and not selling it, obviously.

Some lenders do not charge exit fees at the end of the natural term, so that might be an even better reason to hang on for the seven years.

wnxsy

The table states that only 3 of all the lenders will pay interest, and none of them at 8%, so why trying to twist their arm? As I understood from the bank charges forum is that interest can only really be claimed when going to court, so why go to court for a few pounds of interest?