Please help- Bank chasing me for redemption fee

daz_121

Hi all

not sure what to do!! i got an letter from the bank to today to say i owned them £3700 for an early redemption fee.

This all came about when i sold my house but was going to buy another one and was going to port my mortgage over, so i paid a booking fee but turned out the house i was going to buy fell through. I was told i was able to hold that rate for six months. Any way my house sold and before completeing my solictors asked the bank for a final settlement figure and then sent the remaining money to me. Its not been 7 months what i think has happened is they asummed i was going to take a new mortgage with them and i havent!

What can i do ? i now do not have the money and i dont see why i should have to pay it back.

1. they were asked to provide a final figure
2. its been 7months
3. i was told by there advisor in branch that they would take all funds owed to them before i see any remaining money!

Not sure what to do now

ACG

I thought most lenders took the ERC's and then refunded them once you purchased a new property.

It sounds like its been over the 6 months going off yoru post.

To be honest....you agreed to the ERCs, you agreed to being able to port the mortgage.
Its not the lenders fault so they just want their money and for you to keep your side of the bargain. Im not sure there is a lot you can do short of striking up some sort of repayment deal with them.

Sorry to be so straight but im not sure you have much of an argument...unless ive mis read it.

Thrugelmir

[QUOTE=daz_121;53952905

Not sure what to do now[/QUOTE]

Make an arrangement to repay the debt.

You've failed to keep your side of the bargain. So liability has crystallised.

holly_hobby

It is a contractual term, that you both agreed and entered into when you secured the borrowing.

To refuse payment of the due sum is a breach of contract, which is lawfully pursuable, via the courts if need be.

The fact you have not retained the known penalty fee in anticipation that your porting may not finalise within the defined time frame, was obviously an unfortunate choice you made, that has now come home to royally roost I'm afraid.

The lender may be agreeable to the arrangement of a repayment plan for the sum, or if you are shortly ready to complete (if you haven't already done so with an alternative lender), they may permit you to add it to your new borrowings - either way yes you have to pay it.

Hope this helps

Holly

dunstonh

i now do not have the money and i dont see why i should have to pay it back.

You knew you had this potential bill coming. The bank was good enough upon your request to hold open your deal for 6 months. You failed to find a property in that time to continue the deal and you now have to pay what you agreed.

You either need to pay them or arrange finance to cover it. Whilst the bank no longer holds security on the debt, they can still register it as a default on your credit file which will really destroy future plans for many years.