Mortgage Redemption Fees

joe_pineapples_3

Hi all,
Hope someone can help me.
I am selling my house and have to pay an early redemption fee (which I expected) but also have to pay interest on top, is that normal?
My mortgage is £127,000 and the redemption fee is £7,600 plus interest of £4,000.
Also, I am not buying another house do I have to pay any tax on what profit I make? It was my main and only home.
Thanks for any help.

KiKi

No, you don't pay tax on the profit you make if it was your only home and your primary residence, and you haven't rented it out (if you have rented it in the past then it depends on how long for etc...couldn't tell you exact figures, sure someone else could!).

Re the interest - I couldn't answer that, but suggest you check out the Ts&Cs of your mortgage which should spell it out for you.

silvercar

Those figures look high. 6% redemption fee is that what you were expecting?
That interest of £4,000, at 6.5% that is nearly 6 months interest!

joe_pineapples_3

I was sort of expecting the high redemption fee - around about the £7,000 mark but didn't realise I would have to pay that interest.