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urgent redemption fee help
blzbob
Posts: 4 Newbie
Problem
Selling existing house
Moving into rented accomodation for a few weeks
Buying new house
I can exchange on sale and exchange on purchase but there is this gap in the middle where I don't have a house and hence cant have a mortgage. I have redemption penalties but am happy to continue with the existing lender bar the gap (even pay them an additional payment if needed).
Will speak to lender(Natwest) tomorrow but is this doable
Selling existing house
Moving into rented accomodation for a few weeks
Buying new house
I can exchange on sale and exchange on purchase but there is this gap in the middle where I don't have a house and hence cant have a mortgage. I have redemption penalties but am happy to continue with the existing lender bar the gap (even pay them an additional payment if needed).
Will speak to lender(Natwest) tomorrow but is this doable
0
Comments
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A lot of lenders will not charge you redemption penalties if you complete on your new home within 6 months of redeeming the mortgage on your old one.
Some lenders will charge you the redemption penalty initially and then refund it when you complete on the new one.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Problem
Selling existing house
Moving into rented accomodation for a few weeks
Buying new house
I can exchange on sale and exchange on purchase but there is this gap in the middle where I don't have a house and hence cant have a mortgage. I have redemption penalties but am happy to continue with the existing lender bar the gap (even pay them an additional payment if needed).
Will speak to lender(Natwest) tomorrow but is this doable
Most mortgages have a portability facility built in, where you can take the existing mortgage with you to another property within a three month period of selling and they will not charge you a penaty fee (or refund one if you have paid one)
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 would put it the other way round - most will charge it up front (as they don't know that you will actually ever take a replacement mortgage) and then refund it when your replacement mortgage completes.A lot of lenders will not charge you redemption penalties if you complete on your new home within 6 months of redeeming the mortgage on your old one.
Some lenders will charge you the redemption penalty initially and then refund it when you complete on the new one.
So you are very likely to have to pay up in the first place.0 -
Thanks all, rang Natwest and they said 3 months, won't matter if they charge it first and then refund as wont have the money long enough to make any interest. :beer:
just so its findable for others (was getting stressed last night not finding anything when I googled) will use the following keywords
moving mortgage redemption fee penalty rented0
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