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Tesco Mortgage Closure, does this void exit fee?

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Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    At the end of the product term you'll default onto the SVR. Magellan will sell on the mortgage book in due course.

    You never know you might be offered a discount to leave.
  • dunstonh
    dunstonh Posts: 121,124 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    truby123 wrote: »
    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 :(

    If they were forcing you to leave them they would have to pay your costs. As it happens they are not forcing you to leave them. You either go onto the SVR or you remortgage.
    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.
  • Thrugelmir wrote: »
    At the end of the product term you'll default onto the SVR. Magellan will sell on the mortgage book in due course.

    You never know you might be offered a discount to leave.

    That would be nice, but I have already asked and its a no!
  • dunstonh wrote: »
    If they were forcing you to leave them they would have to pay your costs. As it happens they are not forcing you to leave them. You either go onto the SVR or you remortgage.

    True, they are not forcing me. But if I did stay and just let it run onto the SVR that would be over 4% - and with the good rates out there no one will stay on the SVR. So even if I didn't want to re-mortgage at the end of the term I wouldn't really have a choice as the monthly payment would go up.
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