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Interest Only Penalty Advice.
BostonR
Posts: 31 Forumite
Just discovered our £440K interest only mortgage with Northern Rock has an £11,000 penalty if we change before Nov 2014, reduced by 50% if we take out a different product. House has been sold and we both have a very good equity pot as we want to downsize.
Is there anyway out of the penalty clause or do we pay?
Is there anyway out of the penalty clause or do we pay?
0
Comments
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Can you port the mortgage to a new property?
Otherwise no unless you cancel sale0 -
jacobtheamish wrote: »Can you port the mortgage to a new property?
Otherwise no unless you cancel sale
Long story but we will only require a small mortgage and we do not want interest only. The deal was agreed by my new partner who was not aware of the penalty.0 -
The repayment method has no bearing.
The penalty is influenced by the amount being borrowed on the new mortgage. If the new mortgage is smaller than the old one, a partial penalty is normally payable in proportion.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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