Early settlement charge on Mortgage

shomk

Hi
I noticed that when we remortgaged in 2008 from GE Money to C&G that there was an early settlement charge of £3238.72 included. Our original paperwork from GE does state an early settlement charge of £3277.88 (2%).
I was looking at reclaiming back mortgage exit fees and this seems substantially higher than any of the testimonials on here. Im assuming this is the same thing? Even though it is there in black and white, it wasnt really discussed at the time and with it being our first mortgage we assumed this was standard and didnt question it.
It was based on the fact that after our two year fixed mortgage finished, we wanted to move as their standard variable rate meant that our mortgage increased by nearly £200, so we left during year 3. I see now it would have been cheaper in the long run to stay on the variable rate but we couldnt afford this jump in monthly payments!
Can anyone shed any light on this please?! Thanks.

_Andy_

It't not the same - you're talking about an early redemption charge for exiting the rate, not an exit fee. So no wrongdoing here.

dunstonh

I was looking at reclaiming back mortgage exit fees and this seems substantially higher than any of the testimonials on here.

That is because it is not a mortgage exit fee.

Im assuming this is the same thing?

nope. You are referring to an early repayment charge. When you buy a special deal, there is a tie in period. The lender takes on financing to meet that deal. If you repay in the period of the deal, the lender can make an early repayment charge which covers their costs.

Even though it is there in black and white, it wasnt really discussed at the time and with it being our first mortgage we assumed this was standard and didnt question it.

As you say, it is in black and white and is standard.

shomk

Fair enough, thanks to you both. You live and learn, don't you!