Early Repayment Charge - Can't get out of my deal!

gedimindtrick

I recently applied to borrow an additional 20K against my mortgage to pay of some debts. The lender declined to provide due to financial association with my wife, which is over 6 years old! She doesn't pay any bills and hasnt for 6 years as I pay them all myself. They also declined to quash my early repayment charge to let me move elsewhere, which is not responsible lending!

Does anyone have any ideas of how I can get out of my deal?

Getting desperate now, so need out!

[Deleted User]

gedimindtrick wrote: »

They also declined to quash my early repayment charge to let me move elsewhere, which is not responsible lending!

I think you'll find it is.

ACG

gedimindtrick wrote: »

They also declined to quash my early repayment charge to let me move elsewhere, which is not responsible lending!

How is a lender not waiving the charges irresponsible lending?
Irresponsible lending usually falls in to the category of lending to someone who will not or can not pay the money back.

Does anyone have any ideas of how I can get out of my deal?

Do you have any financial commitments jointly held with your ex? If not and it is an historic connection you can apply to all 3 credit agencies to have the association removed, wait for it to update and then re-apply to your current lender.

You might also be able to apply to a second charge lender for the extra money.

They will not waive that early repayment charge, there is no legal or moral reason to do so. YOU signed up to a deal and now it does not work for you, you want them to waive their costs.

gedimindtrick

I am not saying that the charges arent right, what I am saying is I am trying to sort the debt, but by not letting me move is not helping and to me makes no commercial sense because if my position gets worse and I cannot pay the mortgage then surely I am doing the right thing by trying to sort it out?

kingstreet

You are making one fundamental assumption here, that your mortgage lender would receive the penalty payment. That is usually not the case.

A mortgage lender will approach the money markets for a rate swap which will allow them to offer a mortgage product and the ERC attached to it is to compensate the provider of the rate swap should the borrower want to get out early.

That's why there's little flexibility and the amount payable remains right up to the fixed end-date.

ACG

If you have been declined because you and your financial associates are not a sure thing for repaying the debt, then they have a right to limit their exposure. That is responsible lending.

I think rather than complaining about a lender, you should spend your time looking at alternatives - secured loans, unsecured loans, balance transferring credit cards to better rates, selling an organ, second job, overtime, asking for a pay rise etc etc.

getmore4less

what are the numbers.

mortgage amount, LTV, rate, full term, ERC and term of ERC.

the problem you have is you have gone to the lender to ask them to take a risk on because you have borrowed money you now say you can't afford.

gedimindtrick

Thanks for the help!

stator

gedimindtrick wrote: »

The lender declined to provide due to financial association with my wife, which is over 6 years old!

Glad to hear that your wife is over 6 years old.

silvercar

ACG wrote:

You might also be able to apply to a second charge lender for the extra money.

This could work, it means you keep your current mortgage intact and borrow the extra you want from someone else.

Thrugelmir

gedimindtrick wrote: »

The lender declined to provide due to financial association with my wife, which is over 6 years old! (

More to the point what is your current association. Is she an ex?