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Early repayment fee?
judpud
Posts: 15 Forumite
We're just in the process of moving our mortgage but this morning we revived a letter from our current mortgage provider which is Kensington stating if we complete before the 20th march we will have to pay an early repayment fee?. Now please someone correct me if I'm wrong but don't I have to be fixed in to be charged this?.
We bought our house 10 years ago and got our mortgage with GE money we fixed in for 2 years after that we dropped to the base rate which we were more than happy with so have just stayed there for the past 8 years. 2 years ago GE money sold our dept to Kensington we received a letter notifying us of this and was told everything stayed the same, our payments have stayed the same apart from a few months age we received a letter stating the payments had dropped by £5 per month.
Why are they claiming I have to pay an early repayment fee? I've not been fixed in a deal for 8 years? They also have not stated on the letter how much this is they have only stated how much the closing fee is. Can they charge us this?
We bought our house 10 years ago and got our mortgage with GE money we fixed in for 2 years after that we dropped to the base rate which we were more than happy with so have just stayed there for the past 8 years. 2 years ago GE money sold our dept to Kensington we received a letter notifying us of this and was told everything stayed the same, our payments have stayed the same apart from a few months age we received a letter stating the payments had dropped by £5 per month.
Why are they claiming I have to pay an early repayment fee? I've not been fixed in a deal for 8 years? They also have not stated on the letter how much this is they have only stated how much the closing fee is. Can they charge us this?
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Comments
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Why are they claiming I have to pay an early repayment fee?
What does your contract say?
Basically, all your questions have the same answer as that. What does your contract say?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
We are more likely to be talking about a exit fee or deeds release fee.
These are flat charge on the contract payable at any time on full redemption.
What is the size of the fee, what is your outstanding mortgage amount, and how is it referred to in the letter?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
They have not stated the amount for the ERF but the letter states we also have to pay a £150 closure fee which is fine that is normal but I can't understand why we are being told we have to pay a ERF when we are not tied in.0
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It is possible that your original mortgage terms stated a notice period for redemption even when on your follow on rate, or even possibly an "overhang", which I recall a lot of sub-prime deals had back pre-crunch, although I can't specifically remember if GE was one of those lenders.
Best bet is to check your ORIGINAL documents for the terms of the ERC as your first step.0 -
Your annual mortgage statement should have shown any charges to repay.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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