Redemption fees

concho007

Hello

I wonder if anyone can help me on this one. I am searching for a new mortgage as my current tracker ends in October with Santander. I have been working out interest rates with another lender etc and looks like I will be going to HSBC on a lifetime tracker at 2.99% there fees are £499 booking only, no survey fee, no solicitor fees. (as opposed to santanders 3.49% for 2 years)

So I just spoke to Santander who say there is a redemption fee of £225 if I go to another lender! now I have noticed that on the original mortgage agreement there is no mention of this apart from a mortgage account fee of £225 that has been deferred until the end of the mortgage. So I phoned them and asked if this is the same fee and not an additional one, and they stated that yes it is the redemption fee! I asked why is it called something different now, they didnt seem to know why and that it was for maintaining and admin costs etc for my mortgage.

My question is can I claim this money back after I have paid it or actually get out of paying it at all? My mortgage with them started in 2010 and the tracker is a 2 year deal and is ending on October 27th.

It's just that I have heard alot about redemption fees being dodgy and talk of claiming them back etc. Although I didnt really understan Martins guide or if it really applied to me. So can anyone put it in laymans terms to me.

Cheers

Steve

Thrugelmir

The fee is payable whenever you redeem your current mortgage. So there's no get out.

antrobus

concho007 wrote: »

.. I have noticed that on the original mortgage agreement there is no mention of this apart from a mortgage account fee of £225 that has been deferred until the end of the mortgage. ..

So if you take out a mortgage with HSBC you'll be ending your mortgage with Santander and so the fee of £225 will be payable to Santander.

What's the problem?

Samoht1977

Have you actually worked out whether it is worth switching? Is the rate 2.99% plus base or is it 2.49% plus base?

Depending on your out outstanding mortgage amount it may not e worth switching.

HSBC have some fairly strict lending criteria and unless y