Mortgage early repayment fees

Norj82

Apologies if this has already been a hot topic but was just wondering if mortgage early repayment fees can be disputed? I settled a sum early a couple of years ago and was charged about £4k for the privelage . Any guidance would be great.

dunstonh

but was just wondering if mortgage early repayment fees can be disputed

There are very few successful cases. Most are historical (lender failed to put them on the contract - but all those would have well and truly expired by now).

The charge is considered fair and not unlawful.

I settled a sum early a couple of years ago and was charged about £4k for the privelage .

What you mean is that you chose to take on special terms on a mortgage and agreed a contract to stay with the lender for a certain period but if you wanted to break the contract you would pay the penalty. The penalty exists to cover the costs that the lender would incur by you breaking your contract. Its not a privilege.

Norj82

Thanks dunstonh, I thought as much. I would of held out until the special rate expired and avoid selling the property but the prices in the area have now bombed. Definitely feel like a I got out at the right time, managed a minor profit after fees etc.