Easrly Repayment Charge stops house sale!!! Help

Kerstin_2

Hello everybody,
I am trying to sell my house in order to avert bankruptcy and reposession. Unfortunatly, my mortgage lender insists on a sum of £2600,00 above the agreed sale price £95,000,00 (I am getting no money out of this whatsoever!) due to the Early Repayment Charge. Is my lender acting unreasonably? And if so can I complain to the Financial Ombudsman about this? If the sale is not going through the house will be reposessed and/or I have to go bankrupt.
Is there any advice out there?
Regards.
Kerstin

RAS

Hi

Would suggest posting on the bankruptcy board above as they will have some ideas on this. Some of them will have been there before

CLAPTON

could you provide a few more details

what sort of early repayment charge.. was it a fixed rate deal and you are ending early or is the charge part of the original agreement or what are the circumstances?

chevalier

Hi there
Would they wave it if you explained that they would get less if they had to repo the house to get their money. Could you borrow the charge from somewhere. What about this thing about exit fees being wrong for mortgages anyway.
Any of these worth a shot?
chev

Kerstin_2

Hi Clapton,

Here are some more details:
- i have to sell because I split from my husband and I can't pay the mortgage on my own (along with the other debts and crap he left behind)
- the Early Redemption Charge is 5 % of the mortgage figure of £91864.95
- it's a fixed term agreement until 08/08.

I have informed the lender of my financial and personal situation but the only thing they are doing now is threatning reposession.

CHEVALIER - The are also charging £175 Redemption Fee. Nice.

Any help or advice is much appreciated.

Regards.