Early Repayment Fee?

Alanb27

First of all, Hi everyone ....

My wife and I just recently changed our mortage from the Halifax to the Clydesdale. The original mortgage was one that my wife had before I met her, and as it was a "fixed" mortage, she was apparently told that she was tied to it until 2009 and if she DID leave she would be charged a % each year up until then.

For instance the first year I think it was about £2000 and then down to say £1700 etc etc. When we paid it off this year we were charged £900.

Is this similar to the overcharging that I have been witnessing on The Tonight program, or is this something entirely different that is perfectly legit and unavoidable?

Any help much appreciated

Alan

KTF

The fee you paid was for breach of contract and was in the t&c when you signed up. The fee that Martin was mentioning tonight was the mortgage exit administration fee (meaf) thats charged when you move mortgages.

They are not the same and you wont be able to claim the early repayment charge back.

motman_2

I had a fixed rate morgage, along with a second morgage. (both with Barclays) When I could not keep up with the second morgage payments, Barclays made a repossesion order. I sold the house and repayed both morgages. Barclays charged me over 4k for early repayment.
Doesn't seem fair, but I guess the big boys win in the end!
Motman

dunstonh

motman wrote: »

I had a fixed rate morgage, along with a second morgage. (both with Barclays) When I could not keep up with the second morgage payments, Barclays made a repossesion order. I sold the house and repayed both morgages. Barclays charged me over 4k for early repayment.
Doesn't seem fair, but I guess the big boys win in the end!
Motman

Its perfectly fair.

You agreed a fixed rate deal which Barclays had to arrange via the money markets to get the fix. A deal that was better than the standard variable rate with no tie in.

You then went on to break that deal and were quite correctly charged for it as Barclays would have faced a potential loss if they didn't charge you. The only other option would have been to pass your expense on to other customers. Now that wouldnt be fair.