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

MarkyMarkD

I always advise that people ignore portability unless they are 1000% certain that they will be able to get a new mortgage. Someone who's already got a murky credit history doesn't fit into that category at all.

Honestly, your mortgage adviser was a numpty to recommend taking a mortgage which tied you in longer than the period you intended to live in the property.

But I acknowledge that it's hard to get sub prime mortgages without long tie-in periods.

I'd like to know what evidence you have of the original lender's promise that you could port the mortgage. If you have it in writing, then you have a good case for complaint and I'd take it to the Financial Ombudsman.

But if you don't, and it's just heresay via the mortgage adviser, then it's a lot more difficult.

Do you have something from the adviser in writing explaining why he recommended a mortgage tied in for longer than you intended to live in the property, and referring to this "promise" from the lender?

Dan_Collins_2

IandD wrote: »

Me and my husband took out a mortgage last year with an ERC, we are both discharged bankrupts from April 2005 and this was the best mortgage we were offered by our mortgage adviser (self cert), we knew we would be wanting to move house this year or early next year and the lenders agreed we could port the mortgage over no problem. However the lender has now sold on our mortgage and the new lender will not port over the mortgage and want £8000 to get out of it. We have 18 months left of our current deal so it looks like we are staying where we are as we are not prepared to lose this money.

Ironically looking into a new mortgage the best one for us would be with the original lender who sold on our mortgage.

Any advice please?

Many thanks

No lender will promise to be able to port a mortgage in the futre. What could of happened is the lender may have said yes we can port you at that time. I am guessing its GMAC as they sell the most often. They do not promise to port.

Sub prime deals are very hard to get with short or no tie in periods. Lenders know you have to like it or lump it. It has got better with extended ties going away but they will not drop the tie in 100%.

I suggest you sit tight and wait if you can. House prices will not go up so much you are priced out. If anything they may be the same.

Markymark your a bit harsh on the broker, we/he can only work with what is in front of him. They wanted a mortgage he got them one. The lenders say they port so fine. he cannot stop the lender selling the books on!

MarkyMarkD

I don't agree that I'm harsh on the broker, Dan.

IF (and I emphasise that IF) the customer was clear they intended to move in x years, and the broker recommended a mortgage with a tie-in of y years, where y>x, then unless the broker made clear in the clearest possible terms that there was a major risk of taking this mortgage, the broker was negligent.

Borrowers cannot be expected to understand that portability is a useless non-binding promise.

Brokers can and should be expected to understand, and explain that, in every case where portability is mentioned.

parkemitch

Hi,

We rang Tipton and Coseley this morning - they said that we never paid a MEAF ..

Hmm, would they really let us pay off a mortgage without charging anything :S

Any advice?

Thank you

Noz

parkemitch wrote: »

Hi,

We rang Tipton and Coseley this morning - they said that we never paid a MEAF ..

Hmm, would they really let us pay off a mortgage without charging anything :S

Any advice?

Thank you

This thread relates to early repayment charges rather than Meafs, however in answer to your question there is nothing to suggest that they are incorrect unless you have proof to the contrary.

parkemitch

Ah ok Thanks anyway

danman2k

i left my mortgage deal early a four years ago knowing i would pay a charge which is fine. but i also paid a funding fee which caught me out and was the same amount as the early redemption fee 3 months interst. can someone explain what a funding fee is pls. it was first national btw. thank you

fetherston

I have got a really annoying problem (i know I should put some cream on it!) - We remortgaged from Halifax becasue we unhappy with their service for various reasons. They sent us a redemption statement. We went ahead with the remortgage but on the afternoon before the completion theyr ang and told us that they had forgotten to add in an early repayment fee (of £5.5k). We were too far down the line to back out. We later foound out that they had forgotten to tell us becasue in fact if we had waited three days there would have been no fee to pay. They didnt tell us that either. We complained, and thence to FSO who found that becasue they originally issued documents (years ago) stating these fees the bank were legally right and therefor the complaint could not proceed. He did conceed that events were 'regretable' and that Halifax should possibly have been more sensible when we firtst made the complaint. Where should I go now? All advice welcomed.

stevebutt69

KTF wrote: »

If you changed early and there was an early repayment fee attached then that was part of the contract and you cant claim it back.

I have an scotish widows Versatile Endowment plan which i could cash in now but they want too take 50% of the terminal bonus £2290 can they do this and is it worth cashing now in this ecconomic climate -the policy is not connect to a morgage i took it out as a savings plan any ideas which is the best way to take this.
Thanks

dunstonh

stevebutt69 wrote: »

I have an scotish widows Versatile Endowment plan which i could cash in now but they want too take 50% of the terminal bonus £2290 can they do this and is it worth cashing now in this ecconomic climate -the policy is not connect to a morgage i took it out as a savings plan any ideas which is the best way to take this.
Thanks

Yes they can take a surrender penalty as its part of the contract you agreed to at the start and that hasnt changed at any point.