Santander Repayment Fee?

fluffymovie

My DH and I are in the process of remortgaging. We are currently on Santander SVR and are moving to a 5 year fixed rate with RBS.

We have been with Santander since June 2005 and our 5 year fixed rate came to an end in 2010. Since then, our payments have reduced nicely.

Upon receiving a completion statement from Santander, I noted a charge of £225 for repayment fees? I am just a bit unsure on what this is for as I can see mention of a Mortgage account fee in my 2013 annual statement but it says this is for them to administer and provide my mortgage. They aren't doing anything extra and my previous contract stated no early repayment penalties.

Can anyone advise what this charge might be?

Keekles

It's a Final Redemption Fee which should be on the KFI you received in taking out the mortgage. It's not a penalty as you would pay it as soon as you end the mortgage with Santander - be it to re-mortgage elsewhere or pay off at the end of the term.


e: If you have a KFI from RBS, you'll notice there's a redemption fee on there too. Where all of your fees are listed and when they're to be paid, it should read similar to "On final repayment".

kingstreet

If you remain with the lender until the end of the mortgage term, it is still payable.

cbrpaul

Interesting,

I am about to leave A&L which of course is now Santander, after a A&L 5 year fix rate expires next month.

Is this final redemtion fee also payable for me ?

Or is it a case of diging out the original A&L KFI,s to see if there is a final redemtiopn fee for re-mortaging to another provider after the fixed interest rate expiery period ?

kingstreet

The amount shown on the original KFI is payable;-

if you redeem the mortgage at any time - by winning the lottery, remortgaging, whatever

at the end of the mortgage term when the mortgage ends

whichever is soonest.

Keekles

Redemption fees are incredibly standard. Double check your KFI but chances are there's a redemption fee on there; if you switch lenders you'll likely re-mortgage to cover the redemption fee also.

The only way in which you may avoid a redemption fee is if you were to transfer to an alternative Santander product, but generally speaking, yes, you'll be paying a redemption fee.

dimbo61

If you can find the KFI check that the figure was £225!
Some lenders increased the EXIT fee and tried to apply this to existing customers.

cbrpaul

i always thought as long as you were out of the fixed period term then no early redemtion fees were payable ?

But i guess the redemtion is different so to speak and not an early redemtion fee !!

I will dig out my KFI tonight , I still have them !!

Keekles

No early repayment charges would apply once on SVR (out of the fixed term).

The redemption fee applies in all cases. (Remortgage, final payment etc.)

There's a difference in 'charges' and 'fees' effectively - hope this helps.