Maybe a silly question? - exit fee vs finishing your mortgage

jedeye

Hi,

I'm with the Chelsea BS and I'm too afraid to ask them! Is the 'exit fee' (i.e. moving your mortgage to another lender) the same if you simply finish your mortgage?

Chelsea charge £195 for exiting.

Thanks,

jedeye

forumfan_2

I believe so. I was with Portman and had an endowment mortgage which was on red alert so decided to go down the compensation route and use the money along with some savings to pay off the outstanding amount. I had to wait until the mortgage deal had expired to avoid paying a penalty.

Noz

some (most?) lenders don't charge if the mortgage simply finishes its term, only if the mortgage is paid off ahead of schedule

drummer_boy_2

jedeye wrote: »

Hi,

I'm with the Chelsea BS and I'm too afraid to ask them! Is the 'exit fee' (i.e. moving your mortgage to another lender) the same if you simply finish your mortgage?

Chelsea charge £195 for exiting.

Thanks,

jedeye

Hi Jedeye
Your best bet would be to ask Chelsea for "a full and final redemption statement to include any penalties" this does not mean you will be redeeming the mortgage but simply that you will have written confirmation of the costs of doing so. You haven't mentioned one but do you know whether or not you are in any form of mortgage deal ie fixed / discounted at the moment because this could give rise to further financial loss, £195 is about average these days for exiting from a lender

forumfan_2

drummer_boy wrote: »

Hi Jedeye
ask Chelsea for "a full and final redemption statement to include any penalties"

This may be restricted to one per year and could possibly have a limited validity period

jedeye

Thanks for all the above advice.

I'm on Chelsea's standard variable rate at the moment so fully flexible for me to overpay etc. I did try to re-mortgage to ING Direct but that was a real nightmare!! I think ING did get a redemption statment from Chelsea and Chelsea did say they charge if you request more than one in a calendar year.

I wouldn't mind keeping a nominal sum in the Chelsea mortgage because there is a possibility that they will end their mutual status and dish out some money (carpetbagging!). But seeing that I have 10 more years for my mortgage to naturally expire I don't want the 'early exit fee'/fully paying up fee to go up every year.

Chelsea 2 years ago was £95 to exit and now they are £195.

jedeye