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What is a mortgage charge release fee?
trollopscarletwoman
Posts: 8,732 Forumite
Hello
On the bottom of of my mortgage statement it mentions "current charge release fee" of £135.
What is that?
I'm looking to remortgage so would that have be paid by me if I switched to another lender?
If I did a product transfer with existing lender would they possibly waive this?
Also what is a mortgage commitment fee?
Thanks.
On the bottom of of my mortgage statement it mentions "current charge release fee" of £135.
What is that?
I'm looking to remortgage so would that have be paid by me if I switched to another lender?
If I did a product transfer with existing lender would they possibly waive this?
Also what is a mortgage commitment fee?
Thanks.
0
Comments
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Fees like "deeds release" or similar are what the lender charges to close your account and remove the charge from the property.
It's payable when you leave, or at the end if you get to the point where the mortgage is fully repaid.
It would be payable on remortgaging, yes.
Your existing lender won't be waiving it if you do a customer retention product as you won;t be closing the account. It will simply be put off until you do leave, or until the end of the term.
A commitment fee would suggest it is something charged to get you to commit to a product to disadvantage you from jumping ship if rates fall before you complete.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Fees like "deeds release" or similar are what the lender charges to close your account and remove the charge from the property.
It's payable when you leave, or at the end if you get to the point where the mortgage is fully repaid.
It would be payable on remortgaging, yes.
Your existing lender won't be waiving it if you do a customer retention product as you won;t be closing the account. It will simply be put off until you do leave, or until the end of the term.
A commitment fee would suggest it is something charged to get you to commit to a product to disadvantage you from jumping ship if rates fall before you complete.
Thanks for that.
If I did a customer retention product what I'm trying to get at is whether I'd have to pay this charge release fee twice. Once at the end of this mortgage and something again at the end of the new fixed 5 year deal I will be angling for tomorrow.
The mortgage commitment fee is £990 -
You do not pay it if taking a customer retention product.
You will pay it when you leave, or at the end of the term.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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