Early penalty charges

lori52

I have read Martin's tip for avoiding mortgage exit fees, i.e. by leaving a nominal sum such as £50 in the mortgage to keep it "open". Is it possible to do this to avoid paying early repayment penalties? My son is having to sell his home and is going to be hit with a £4,500 penalty. Could he avoid this by leaving the mortgage "open" and if so, how would he go about doing that? Doesn't the conveyancing solicitor dealing with the sale haveto repay the full amount to the building society?

Any advice in this matter would be very much appreciated.

dunstonh

Is it possible to do this to avoid paying early repayment penalties?

No.

Typically, they are % based on the amount you repay above any allowance that may exist.

Could he avoid this by leaving the mortgage "open" and if so, how would he go about doing that?

With the property sold, the lender will want their money back so he cant do anything.

He wont be able to avoid this unless he is buying another property and the mortgage is portable.