Early redemption fees

song_of_calliope

Just factual information. We're trying to find the paperwork now.

Goldiegirl

Poppy9 wrote: »

If you are buying another house and will buy and sell at same time then speak to your lender. They might let you transfer your mortgage to the new property and you just incur valuation fees.

The percentage you repay for early redemption often reduces during the fixed period so might be 5% in first year, 4% second year etc. or a fixed amount.

That's what I was thinking could be a solution.

You would need to apply for a new mortgage on your new property, (with the same lender)but it may be possible to 'port' the interest rate over to your new mortgage

If you needed to borrow more than your current mortgage, you would probably have the additional funds on an interest rate from their current buyers range.

It'd certainly be worth asking about this

james_toney

could you not rent it out until you decide on somewhere to buy

GDB2222

james_toney wrote: »

could you not rent it out until you decide on somewhere to buy

That's a really, really big step to take in order to save £3000. Lots of property bought as a home does not work well as a letting property, There may be a large garden, for example, which most tenants won't look after. So, what you gain in rent you lose in value because the garden ends up a mess. That sort of thing.

Renting might work, but it needs careful thinking about.

Poppy9

james_toney wrote: »

could you not rent it out until you decide on somewhere to buy

You need your mortgage providers permission and they might refuse or transfer you to a buy to let mortgage which might incur fees.

Plus to rent out you will incur costs in complying with safety regulations, plus depending on how far away you are moving it might be a hassle if your tenants have maintenance issues.

GDB2222

Poppy9 wrote: »

You need your mortgage providers permission and they might refuse or transfer you to a buy to let mortgage which might incur fees.

Plus to rent out you will incur costs in complying with safety regulations, plus depending on how far away you are moving it might be a hassle if your tenants have maintenance issues.

To be fair, you ought to get your lender's permission, but the sky won't fall in if you don't tell them.

WATTY1978

Goldiegirl wrote: »

That's what I was thinking could be a solution.

You would need to apply for a new mortgage on your new property, (with the same lender)but it may be possible to 'port' the interest rate over to your new mortgage

If you needed to borrow more than your current mortgage, you would probably have the additional funds on an interest rate from their current buyers range.

It'd certainly be worth asking about this

This is true but i am staying with my provider just borrowing more and i'm having to pay the early redemption fee. it is because im on a new deal but when i calculated staying on my fixed rate it worked out cheaper to pay the early repayment fee than stay on a higher rate. if you end up buying again it may not work out as bad as you think.
good luck

song_of_calliope

Thanks again for the advice. For various reasons we won't be able to rent the house out. I'll try to negotiate with nationwide but I don't expect to have much luck based on what everyone has said. Oh well, we should've been more careful and have learned our lesson the hard way.