Morgage fees.

Norrissue

I have gone thro the buying and selling process and am about to exchange, on Thursday i rang my solicitor about my redemption fee from my previous morgage, I am not moving Morgage Company, and have taken out a new morgage with the same company, I was informed that i have been charged interst amounting to 700 + plus the usual fee. What i do not understand is that I am not moving companies but I am being charged 1000+. I was not in a fixed fee plan either jst an ordinary morgage.

Can anyone give me some info please as this seem to be a huge amount of money to be charged for staying with my morgage company.

Sue

toonfish

£700 is the interest you owe on the loan, not a fee. Perhaps you are completing just before the next mortgage payment was due?

Norrissue

toonfish wrote: »

£700 is the interest you owe on the loan, not a fee. Perhaps you are completing just before the next mortgage payment was due?

My Morgage payment is only 155 per month and I complete 1 wk before morgage due. Why do I have to pay this as well as another fee when I am not moving Morgage Lenders staying with the Abbey

Sue

toonfish

I have no idea, unless it is a redemption penalty on your original loan.

Scott

Some lenders put their early repayment charges down as penalty interest of some form, this may be what the issue is.

Give them a ring, and non-confrontationally ask them to explain your statement. They should be able to clear up for you exactly what appears on your statement.

If it is, as it seems, an early repayment charge, you could ask if your rate is portable (i.e. take it to your new property with you) to avoid paying this. But ask them for a further explanation first.