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Buying Out Fees
cheeky_7
Posts: 8 Forumite
My partner has looked into changing his mortgage and has been told it will cost him £9k are they allowed to charge these ridiclous amounts??
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I'd also love to know the answer to this - we paid £2.5 k to buy out of a mortgage, the only reason we did this was because the building society kept messing up our payments in the first place - never got anywhere with complaining, but they sent us a £50 cheque to compensate !! Never cashed the cheque as didnt accept this as a compensation.0
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My partner has looked into changing his mortgage and has been told it will cost him £9k are they allowed to charge these ridiclous amounts??
You will have had this figure told to you at the time that you took the mortgage out. It will be in the Keyfacts document that would have been issued to you before you signed up and also in the offer from the lender.
JoeK.I am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
What about if the Building society default on the agreement?0
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I'd also love to know the answer to this - we paid £2.5 k to buy out of a mortgage, the only reason we did this was because the building society kept messing up our payments in the first place - never got anywhere with complaining, but they sent us a £50 cheque to compensate !! Never cashed the cheque as didnt accept this as a compensation.
You can confidently cash the cheque as long as you write to the company telling them that you are cashing the cheque but that you do not accept it as full and final settlement and you reserve the right to further redress.
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
I am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0
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But that is a stupid amount of money and is so unfair is there no way out?? It surely does not cost them more than administration fees0
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But that is a stupid amount of money and is so unfair is there no way out?? It surely does not cost them more than administration fees
The redemption penalty is not based on an administration fee. It is often a tranche of money that is bought on the open market by the lender and it may be a fixed rate that the lender has marketed. The lender would also incur a penalty if they tried to pay off the money from where they bought the fixed rate.
Do you have the mortgage Keyfacts document that was issued before you signed the application form?
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
Will have to tell him to dig out all info. Thanks for your replies0
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