Transfer fee question ?

lvu

If anyone has any advice it would be much appreciated.

I'm trying to help my mum sort out her mortgage after years of not great advice. First she got stung by the endowment shortfall problem and switched to a repayment mortgage or so she thought. We found out recently that she had been put on a 1/2 repayment 1/2 intrest only mortgage. Because she had no fixed term agreement her intrest rate had slowly climbed to nearly 8%.

In the last couple of months she tried to get it sorted, we contacted her mortage company and got them to switch it to a full repayment mortgage at a 3 year fixed term 5.6%, ofset agains her savings she already had the option of overpaying whenever she wants and this has been kept.

They want to charge her £400 for changing it, this fee was not mentioned in any of the phone calls arranging the switch and she wants to know where she stands, is a £400 fee usual, any suggestions for what to do next.

Thanks in advance

jamesd

Discussed in the mortgages and endowments board.