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Early repayment charges
samson1967
Posts: 5 Forumite
We have just started to look around with regards re-mortgaging on a buy to let mortgage which was fixed for two years until 2007. When we originally took this mortgage out we advised our financial advisor that we required a fixed rate for two years with a view to remortgaging at the end of the term.
It has transpired however following a telephone call to the mortgage company that although the mortgage was on a fixed rate for two years until 2007 if it is repaid before 2009 we are to be charged 5% of the outstanding loan.
This was a massive shock as the repayments have hugely increased and it appears we can not renegotiate or move this mortgage for another two years.
We both remember raising the issue at the time and were under the impression that it had been resolved, i.e. no redemption fees payable after the fixed rate term 2007. Unfortunately we have no proof of this.
Are we stuck with this or do we have any alternatives??
It has transpired however following a telephone call to the mortgage company that although the mortgage was on a fixed rate for two years until 2007 if it is repaid before 2009 we are to be charged 5% of the outstanding loan.
This was a massive shock as the repayments have hugely increased and it appears we can not renegotiate or move this mortgage for another two years.
We both remember raising the issue at the time and were under the impression that it had been resolved, i.e. no redemption fees payable after the fixed rate term 2007. Unfortunately we have no proof of this.
Are we stuck with this or do we have any alternatives??
0
Comments
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Have you contacted the firm responsible for advising you on the mortgage?I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Yes I have and they have advised that they will retrieve my file from their archives as it was two years ago, and look at it. They did however say that if we signed the offer then it was down to us, which I can see but as I know the issue was raised and queried I can not understand how it has happened unfortunately as it was two years ago my memory is not what it was and I can not remember all of the details. But what I do know is that neither my husband or myself would have knowingly signed such an agreement, the original paperwork that we have is all highlighted over where the redemption fee part is stated and we both remember querying it and both believed it to have been rectified.0
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I'm not an expert on complaints as I've never had one but I think they were trying to give you the brush off. it was their responsibility to advise you correctly and ensure that you were aware what you were doing. I'd ask for a copy of the paper file under your rights with the data protection act and you could find what you are looking for there.I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
This is how I felt, as when I phoned they actually remembered our requirements and quoted this to me, when I explained what had happened they seemed to backtrack and said that as we had the keyfax document that stated this arrangement we were aware of it, but as I said we did raise it as it was not what we required. Without anything in writing however I'm unsure of where we stand.0
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