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Tesco Mortgage Closure, does this void exit fee?
DIYnovise
Posts: 16 Forumite
Hi with Tesco bank mortgages. Locked in for 5 years with ok deal. However much better deal available. Currently ready exit fee is £5k. Given tesco be selling my mortgage on, what are my rights regarding leaving without having to pay exit fee? After all my contract is with Tesco and not whomever they sell to
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Comments
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Why would it?
If Tesco do sell their loan book to another party it will be sold based on the individual contract terms.
Occasionally, some owners of closed books incentivise some borrowers to redeem by waiving exit fees and offering reduced redeem figures. If they do (I cannot see it in this case) that is driven by owner of the book.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 -
If your contract is with Tesco, as you say, then why not just stop paying entirely?0
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Just because Tesco have closed their book to new borrowers or lending further to current borrowers, doesn't mean he can stop paying his mortgage.Kentish_Dave wrote: »If your contract is with Tesco, as you say, then why not just stop paying entirely?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.0 -
A Mortgage Book is sold as an asset as it is a large amount of capital, secured on property, paying a quantifiable monthly income.
The Contract with Tesco, would legally become a contract with XXX on the same Terms if the book were sold.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 -
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Given tesco be selling my mortgage on
They are not selling "your" mortgage on. The mortgage book will be bought by a new company and your terms are protected. That includes the charge.After all my contract is with Tesco and not whomever they sell to
That is incorrect.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 -
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I think I get the point thanks 😂0
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I've got a similar situation with my mortgage with Magellan - but the difference is Magellan have stopped trading altogether. This means as each product ends we all have to leave until Magellan will have no one left. My fixed deal ends in Feb 2020 so I'll have to re-mortgage with a new provider then.
But I actually want to move now - however this is going to cost £5,700 in exit fees! And I can't help feeling its a bit unfair as Magellan are no longer doing business! But it is in the contract so will have to pay the fees
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