Help with way out of Mortgage Redemption?

Angel13_2

Any advice please. I have a Woolwich fixed rate mortgage, which the term is due to finish 31 Jan 08 but I am selling my house & not taking out another mortgage. The penalty is 3% which works out at over £2,000! There are only 3 months to the end, is there any way to reduce the fees? Can't afford to lose my buyers. Any body found a way round this?

dunstonh

There is no way round this unless you buy a new property in the next 3 months and they are willing to port it to the new property.

The charge is fair, legal and valid and no loophole exists to get round it.

Angel13_2

thank you (I think!!) though it hardly seems fair, probably only way out is to delay completion - if I can.

dmg24

I am not sure what is unfair about a term that you agreed to?

CHR15

Do 3 months payments come to over £2000??

If not, isn't it possible to simply pay as normal until the end of Jan (mine would have only been £1400)

dmg24

CHR15 wrote: »

Do 3 months payments come to over £2000??

If not, isn't it possible to simply pay as normal until the end of Jan (mine would have only been £1400)

Only if the security is still in place i.e. the house has not been sold.

dunstonh

Angel13 wrote: »

thank you (I think!!) though it hardly seems fair, probably only way out is to delay completion - if I can.

You were no doubt happy to benefit from the fixed rate for the months you have had the no mortgage. Now you want to break the contract which will cost them money. So, that is why its fair.