Would this help me avoid early redemption fee

edtheduck_2

Hi
i am remortgagaing from halifax to abbey and should have money available next week.
My question is this. I am due to pay about £1000 in early redemption fees to halifax because the special deal was a tie-in 'til May.
I do not want to wait until May to redeem, i want to do it asap to release some extra equity.
Is it possible for me to leave some money owing on the halifax mortgage (a small amount) and then pay that off in May? But still go ahead with the Abbey. If i can't i am just willing to forego the fee but thought someone on here might know a way around it!!
Is this allowed or is it too complicated(if even possible)
any advice appreciated
thanks

Leon_W

Not possible I'm afraid.

edtheduck_2

Thanks - i had a funny feeling it wouldn't be do-able!!
Probably something to do with abbey/halifax having the charge over the property? Only 1 co. can have it?
Thanks anyway
ed

AndrewSmith

There are 2 issues involved here.

1) You would pay a redemption fee proportionate to the amount you repaid to the Halifax. IE if you repaid 95% of your outstanding balance you would pay them 95% of the full redemption fee.

2) You are correct that you cannot have 2 1st charges against the same property, Halifax would want to keep 1 st charge, so would Abbey

Leon_W

Not only that ed but (say if it were possible) Halifax would make the redemption charge on the large proportion of the money it had been repaid anyway making any saving practically worthless.

Nice try though !

Edit : Post crossed with Andrews above but I guess you get the picture.