Early exit fees

darius1234

I had to end my mortgage early and was charged a fee. The contract was if i ended the mortgage early ie. under the 24months this charge would be made this amounted to over 4,000 pounds. is this normal for a abbey mortgage.

ACG

Pretty much all mortgages have Early repayment charges (ERCs). The amount they charge varies but £4,000 or more isnt uncommon.

Let_Us_See

The applicable early redemption penalty should have been explained both in the Key Features Illustration and your mortgage offer and shouldn't have come as a surprise.

John1993_2

You should check the terms that you signed up to, just in case they've made a mistake, but a large fee isn't that unusual.

One reason that it's charged is that otherwise customers would be free to remortgage on a whim whenever rates dropped. Banks would therefore always be on the wrong side of a 1-way bet, the mortgages would all be redeemed early when rates dropped, and would never be redeemed when they rose.