Transfer fee help

lvu

first posted on mortgage free wannabe but probibly better off here

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

Noz

What is the £400 for?

If the £400 is for securing the fixed rate, then you maybe able to find other deals with lower or no fee applicable

jamesd

400 to buy a 3 year fix sounds reasonable.

If you say how much the property is worth, how much the mortgage is for, her income and whether she has any missed or late payments or other credit issues one of the brokers here might comment on whether it's a good deal.

lvu

property is worth 130,000
mortgage left to pay is 18,000
her income is 30,000+
she has never missed a payment.

She is almost at a point where she could pay the whole thing off and would liek to stay with standard life as there are no restrictions or penalties for paying it off early. We were just unsure about the £400 fee for transfering it. Does this sound right?

Thanks