Early Redemption Charges

grannieannie_2

My friend has a 2 year deal with Birmingham Midshires, but because she has some financial difficulties at the moment, and she's only in her first year with the deal, she wants to get a bigger mortgage and share with her son. BM woudn't give her more money, and because she has a new offer from Victoria BS, BM want £9,000 off her.

Does anyone does have any ideas of how she can avoid paying this much, please let us know. I noticed another thread from someone else who said is would be £8,000, but that is preposterous. Its a lot of money

wisbech_lad

The way to avoid paying this is to wait until the end of the two year deal, and then switch.

Can the son just lend your friend money until the two year period is over?

dwsjarcmcd

She can't avoid this fee. It was part of her original contract and she is breakng it. If she needs to raise this money, and has equity in the house, she may be better looking at secured loans, which although at a more expensive rate than a mortgage, would possibly work out cheaper than re-mortgaging and paying off the redemption charge.
At the end of the redemption period with BM, she could then look to remortgage away but will then need to consider the redemption charges on the secured loan, although these are much less expensive (around 2 months interest)

David

AndrewSmith

She was happy enough to take the money from the lender initially on the incentive product. She agreed to the terms and conditions of the mortgage when she took it out.

It is not the fault of the lender that she has over committed herself financially and cannot afford the mortgage now. They are perfectly within their rights to charge the fee, there is no case whatsoever for it being waived.

Not being harsh just being honest.

grannieannie_2

Thanks for your comments, It looks as if she is going ahead with a remortgage, and paying the redemption charge, but I can see her getting deeper and deeper into debt. Her son doesn't actually have any money, he's a recovering acoholic, who nearly killed himself just after Christmas by drinking his friend's ex's methodone, and as he's on the new mortgage, I can only see trouble ahead. I think the new mortgage will mean she will have no equity in the house, so if it goes a*** upwards, she's had it, and I don't know what she'll do.

But I've tried my best, can't do any more can I? Exxcept win the lottery and pay off the mortgage for her!!!!!!