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Reclaiming mortgage redemption fees- could this work?

Hi-

Saw the following advice column in today's Guardian:http://money.guardian.co.uk/experts/mortgage/story/0,,2075013,00.html

Could the advice work? (i.e. writing to the mortgage lender and asking for mortgage redemption fees to be reimbursed)

I paid about £3000 in redemption fees earlier this year and it would be great if it could be this easy to could claim the money back!

Ike

Comments

  • AndrewSmith
    AndrewSmith Posts: 2,871 Forumite
    No chance,

    You take an incentive product knowing that there is a redemption penalty if you leave within that time. In return the lender offers you a lower rate than it's standard variable rate.

    You will sign agreement to these terms and they are not 'profit making penalties' but the recovering of costs for the lender.

    They are therefore legal and non-claimable.

    If they were, lenders would stop offering incentive rates and we would all be paying around 7.5% currently.
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