OMG, Redemption fee over sale price!

joeblack066

Just had to have a rant...............I asked Fraggle, sorry , NORTHERN Rock for a redemption figure on my property last week, as completion was due 16/10. They gave me a figure of £155,000, saying that it wouldn't be exact. When it came through today, the day before completion, it was £159,600!! This is £100 more than I accepted and doesn't include all the solicitor's fees and estate agent's fees etc. So it means I have had to delay completion, and get together the rest of the money, which has left me utterly skint. AAARRRGGGHHH!! Just when you think that you are getting somewhere!.
Am trying to calm down, and tho I was lucky to be able to meet the shortfall, it means that I now don't have the fees for the searches on the property that I am buying. EEEK!! Hopefully I will be able to juggle things around as I have to save a deposit for the new house, pay the fees, and live in rented in the meantime. I am earning better than I was but it's going to be VERY tight!!!!!

MegS

I don't understand why you're ranting :-

1. How could you not realise you had a redemption fee? Did you not read up anything on your mortgage before you took the mortgage out?

2. Why did you not check how much had to be repaid before you decided to sell? And ask if there were any redemption penalties to be paid, when they expired?

Sorry to be harsh but you signed up to the mortgage and should know exactly how long you were tied into any fixed rates etc.

hearts

Wasn't it portable?

joeblack066

Hearts, thanks for your useful reply. I wasn't looking to buy again when I sold, just to get away from the 5 interest rate rises that had hit the mortgage. I just happen to have got into a better job so am just starting over. Otherwise then yes, porting would have been a good solution.
MegS - why bother to reply when you are being, as you put it, harsh?
Did I say it was anybody else's fault? No. I made the mistake of taking NR word for what it would be. My fault. I made the mistake of trying to hang on to a house after being cheated out of thousands by my ex. My fault. I know all this. I just needed to tell someone how it had made me feel. I'll stick to the non-judgemental boards in future.

silvercar

A lot of lenders will allow you a small gap between sale and purchase to port your mortgage. If you buy through Northern Rock in the next few months, they MAY repay the redemption charges if take the same mortgage deal out with them again. Do check with them!

PasturesNew

Awww. That's a shame.
It will be such a relief when the deal's done and dusted though and you can crack on with the rest of your life.

Good luck!

joeblack066

silvercar wrote: »

A lot of lenders will allow you a small gap between sale and purchase to port your mortgage. If you buy through Northern Rock in the next few months, they MAY repay the redemption charges if take the same mortgage deal out with them again. Do check with them!

Thats really useful as I will be shopping around again now, so thanks for that!

"Awww. That's a shame.
It will be such a relief when the deal's done and dusted though and you can crack on with the rest of your life.

Good luck!"

Thats how I'm looking at it now, having sorted it out! Thanks for your good wishes.

Indispensable_Hobbes

You've got 3 months to port.. if the product is portable.

Redemption figures arent given over the phone (but theres always a chance i guess)... was it not that they they give you the outstanding balance?

From my experience i'm going to request a redemption statement well in advance to get an idea of everything when i need to.

IveSeenTheLight

jenyking wrote: »

You've got 3 months to port.. if the product is portable.

Redemption figures arent given over the phone (but theres always a chance i guess)... was it not that they they give you the outstanding balance?

From my experience i'm going to request a redemption statement well in advance to get an idea of everything when i need to.

Agree here, it sounds like you initally got the outstanding balance without the aditional ERP costs.

I have noticed with many organisation that the people doing their jobs, quite frankly many of them don't do what they are asked.

I now repeat everything to ensure that what I asked for is what I have been given

Good luck anyway:D

nobblyned

MegS wrote: »

I don't understand why you're ranting :-

1. How could you not realise you had a redemption fee? Did you not read up anything on your mortgage before you took the mortgage out?

2. Why did you not check how much had to be repaid before you decided to sell? And ask if there were any redemption penalties to be paid, when they expired?

Sorry to be harsh but you signed up to the mortgage and should know exactly how long you were tied into any fixed rates etc.

What an unhelpful reply!

Th OP is ranting because they asked NR for a redemption figure - i.e. the total one would have to pay back on a particular date to redeem the mortgage.

This isn't always easy to calculate for a customer as it depends on how the interest etc is accrued. This is the redemption figure (not redemption fee) and should include all costs associated with paying back the mortgage.

The complaint is that this was miscalculated by a large sum of money leaving the OPs finances in disarray prior to their exchange.

Indispensable_Hobbes

if the op didnt ask for a redemption statement to be sent in the post then they cant really moan about not being told the right figure over the phone. as i said before.. redemption figures shouldnt be given over the phone and if they were told an approximate figure.. (the o/s balance im assuming) then theres nothing to complain about, asking for an approximate is .. approximate and mortgages as we know run into hundreds of thousands and early repayment charges can run to tens of thousands.

If an exact figure was required then one could have been sent and that would have given an exact figure and the daily rate of interest if the mortgage wasnt repaid on the day it was calculated to (assuming daily rate applies)

its always easy to blame the co when you've forgotten to do something properly yourself, got knows i've done it before.

these days i ask for everything to be confirmed in writing.

better luck next time, and good luck with the porting if that goes ahead