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Redeeming 1 of 2 Mortgages from same lender
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misterm
Posts: 3 Newbie
I have an endowment maturing and want to pay off one of two mortgage products on the same property with YBS. Enquired today and was told any overpayment or redemption would go against the mortgage with the lower rate (BOE+0.75%) first, rather than the higher product (3.5% fix). Is this standard practice, cant find anything in the documents pack I have at home?
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Comments
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That seems wrong you should be able to choose where your payments go.
Needs someone that knows the lender
If that is the case then don't over pay save the money you can get a better rate.
The issue might be ERC on the higher rate meaning it might be better to drip feed at max overpayment amount anyway.0 -
It does seem unfair, but I can't say I am surprised! No early repayment charges, as the fix rate ends this month.0
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The OPs problem is they say it has to come off the lower rate.0
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getmore4less wrote: »The OPs problem is they say it has to come off the lower rate.
The fixed rate product will incur an ERC if the lump sum is paid before the end of the term.0 -
I think I am being misled by the staff on the counter. For a one off over payment it is probably correct (not that I can see it in the T&C's), but for redemption purposes they should be stand alone. Booked a slot with their adviser to discuss.0
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If the endowment monies are coming to yourself. Just ring and request a redemption statement for the fixed account. Just don't mention the other one. The only time you might have a problem is if the fixed account is the primary account and some lenders do not allow you to redeem this whilst keeping a secondary account open. The way round this is just to make a lump sum to the account and keep it open and not redeem it. Hope that helps0
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Thrugelmir wrote: »The fixed rate product will incur an ERC if the lump sum is paid before the end of the term.
That is a separate issue. (which goes a way soon anyway)0
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