Redemption Charge

gb306

Redemption charge of £13000.00!!

A few years ago I was in love and the markets were very unsettled, my fiance and me thought it would be safest for us to lock ourselves into a long term fix rate of 10 years with the HSBC. The thought process behind it was that we knew what we would be paying each month and that it was secure. Unfortuantely the relationship did not work out and after a few years we had to sell our house and essesitially had to pay 10% of the value of our property back to the HSBC as a redemption charge.

We where very upset at having to pay this as, to be honest when we took our the mortgage we didn't know what redemption charge was and it wasn't explained clearly.

Do I have a right to challenge this, as it was not properly explained when they sold there mortgage to us. Any help or advice would be appreciated.

dunstonh

Redemption charge of £13000.00!!

That doesnt sound like a redemption charge. That sounds like an Early Repayment Charge (ERC).

We where very upset at having to pay this as, to be honest when we took our the mortgage we didn't know what redemption charge was and it wasn't explained clearly.

Perhaps you should take that up with your solicitor.

Do I have a right to challenge this, as it was not properly explained when they sold there mortgage to us.

ERCs are considered fair and legal. The can complain about anything you like. Even the colour of the carpet in the branch. So, you certainly have the right to complain. However, as it was you that broke the contract and you that signed the contract after seeking legal advice on that contract (or not if you chose to bypass that as so many did in the last 10 years) then it is unlikely they will give you the light of day.