Mortgage early repayment fees ...

bubbles29

Grumble grumble ....
Recently discovered that with 6 month on my fixed term mortgage my early repayment fees are £2551 !
Annoyed doesn't even come close ... I was fully expecting some fees but not that much . Wouldn't mind so much if the rate we were paying was something really low and special that the bank had done for us .... But it's not ... It's a whopping 5.99% ! So the bank would not have lost out through me ending the mortgage early At all.
Annoyed ! That they can get away with this ...
Grrrrrrrr

kingstreet

The third party which provided the rate swap to fund your fix is the reason for the charge for breaking the deal early. Unfortunately, the mortgage lender can do nothing about that.

If portable, avoid the charge by porting the current rate to the first part of your new mortgage with the same lender, taking any extra borrowing on a new deal.

ACG

Annoyed that they can get away with what they told you they would do if you paid your mortgage off within the tie in period?

or

Annoyed that you have decided to break the terms of the mortgage you signed up for and have to pay for it?

The KFI AND Mortgage offer would have both explained early repayment charges on there. If you were not happy the time to say something was before applying or at the very least before completing on the mortgage.

Blame the banks if it makes you feel better but I cant see how they are to blame.

dunstonh

Annoyed doesn't even come close ... I was fully expecting some fees but not that much .

Shouldnt be a surprise. You agreed to these charges and terms when you bought the mortgage.

Wouldn't mind so much if the rate we were paying was something really low and special that the bank had done for us .... But it's not ... It's a whopping 5.99% !

The point of a fixed rate is to give you certainty of payment. Not to be the cheapest means. Rate movement may leave you lucky or unlucky but that is not the point.

So the bank would not have lost out through me ending the mortgage early At all.

Yes it would have done. The investors that funded that tranche of lending would need to be repaid. Either at the terms agreed to the end of the term or with a penalty early close fee.

Annoyed ! That they can get away with this ...

I would be more annoyed if they let you get away with not paying it as that would mean others are paying for your decision to break contract.

magpiecottage

You would have received a "Key Facts" document which clearly explained the charges before applying.

So it begs the question "why did you not know about this charge until now?"

mrginge

bubbles29 wrote: »

... ! So the bank would not have lost out through me ending the mortgage early At all.

I'm afraid that people often make this assumption regarding ERCs. Unfortunatly it's incorrect.