ERCs- Early Repayment Charges - early exit fees. (merged).

moon-shadow_2

Hi, i hope i'm in the right place, my appologies if i am not, - a friend of mine had thier home repossed , heartbreaking as it was, he left, how ever when talking to his mother a couple of months later, it became apparent that she still held the deeds for the repossed property, the mother did say the house belonged to her mother, and that when my friend took out the mortgage, she did contact the mortgage company northen rock, to see if they wanted the deeds, they didn't seem bothered at all, now the house was on the market and the potential buyer, whom my friends mother knows quite well, said thier was a problem buying the house, they couldn't find the deeds! any advice anyone

MarkyMarkD

That story doesn't really make sense.

The friend cannot have borrowed money if the house belonged to the mother.

The deeds are irrelevant as they have now been "de-materialised" as far as I understand it - the Land Registry record of ownership is all that counts.

moon-shadow_2

MarkyMarkD wrote: »

That story doesn't really make sense.

The friend cannot have borrowed money if the house belonged to the mother.

The deeds are irrelevant as they have now been "de-materialised" as far as I understand it - the Land Registry record of ownership is all that counts.

thanks, it really confused me too

lasci

Hi,

I have been reading (up on this post and elsewhere) about ERC, and was thinking I don't really want them on my mortgage (which I don't have yet, just researching into them ready for when we buy) - do fixed rate mortgages exist without them? All the websites I have looked at show that an ERC does exist - I am yet to find one without!

On another note, a lot of the websites don't state whether you are allowed to overpay.

Maybe there is a comparison website out there that also allows the comparison of ERC and overpayments?! Wishful thinking maybe?

Thanks for any help and advice anyone can give...

MarkyMarkD

Lenders are unlikely to give you a oneway bet on interest rates which is whAT a fixed rate without ERC would be.

juniorjoint

Hi,

Is there anyone that can help me please?

I was on a variable rate with the halifax and I went in to see them about changing to a fixed rate. The advisor told me to pay off £3100 to reduce the term meaning I would have 7 years left on my mortgage. She then set me up the fixed rate mortgage. I have just received today my mortgage statement and an early repayment charge of £2050 has been applied. I was never informed about this and I certainly wouldn't have paid £3100 off my mortgage for £2050 to be added back on to it. Is there anyone who could advise what I can do about this please?

Thanks Mark

dunstonh

juniorjoint wrote: »

Hi,

Is there anyone that can help me please?

I was on a variable rate with the halifax and I went in to see them about changing to a fixed rate. The advisor told me to pay off £3100 to reduce the term meaning I would have 7 years left on my mortgage. She then set me up the fixed rate mortgage. I have just received today my mortgage statement and an early repayment charge of £2050 has been applied. I was never informed about this and I certainly wouldn't have paid £3100 off my mortgage for £2050 to be added back on to it. Is there anyone who could advise what I can do about this please?

Thanks Mark

Have you evidence to support your views?
Did you see an adviser or a mortgage clerk? (important as a clerk will not give advice but just act upon your requests, whether right or wrong).
Does the documentation show the ERC charge that would apply?

MarkyMarkD

The documentation for the new mortgage wouldn't have shown the ERC as the ERC relates to the old product, not the new product.

But they should have explained to you that an ERC applied to your original product - if it did.

KayDawson_2

Can anyone help? I work for an Almshouse Charity and we are about a third of the way through a 60 year mortgage at 10.875% interest. Balance outstanding roughly £50,000 but the mortgage company have quoted £50,000 extra amount payable if we want to pay the loan off now. This seems totally unreasonable. Is there a way to fight this and where do we start?

dunstonh

KayDawson wrote: »

Can anyone help? I work for an Almshouse Charity and we are about a third of the way through a 60 year mortgage at 10.875% interest. Balance outstanding roughly £50,000 but the mortgage company have quoted £50,000 extra amount payable if we want to pay the loan off now. This seems totally unreasonable. Is there a way to fight this and where do we start?

The charity doesnt get the same consumer protections that an individual has. Plus, the charity cannot purchase retail financial products.

You will need to examine the terms of the loan and what was agreed at the time.