Redemption Administration Fee

crabbycrabcrab

Hi, I'm in the process of shopping around to remortgage as my fixed rate term is ending with my current lender.

Found a deal with Yorkshire Building Society. The rate is the best i;ve found and everything is free apart from something called a 'Mortgage Fee' which is £90. I looked through it and it says this is 'payable on redemption of your mortgage' its also used to be known as Redemption Administration Fee.

My question is, what is this? If I went for this deal and at the end of the fixed rate to goes back to SVR, and I changed lender will I have to pay £90? Or is this only payable if I leave within the fixed rate?

Here is a link to the product I found. Any insight would be great

http://www.ybs.co.uk/mortgages/fixed/products/2yr-fixed-22548.html

kingstreet

You pay it when you leave the lender.

Be that at the end of the fix, or at the end of the mortgage term.

Lemonsqueezer78

Just to add its is also extremely common for mortgage lenders to charge something at the end of your time with them in order to cover the cost of administrating the closure of a mortgage (in my experience it can be anywhere from around £70 - £200+ in some cases).

But it is normal and most lenders/products will charge something like this.