Change of mortgage term

Melting_glass

I currently have a mortgage with A&L which is goint to be paid off next year befor the end of its term. They are calling their mortgage exit fee a'Redemption Administration Charge' this is wapping £295. According to my local branch it is only payable if the mortgage is paid off early. However their morgage account service charges show that you can change the term of the mortage for £25, does this mean that I can change the term of my mortgage and only incurr a £25 fee?

I would like to know if anyone else has any experience with this as I am feeling cautious because it seems to obvious. Any other advise of how to avoid the exit fee would be appreciated. I feel that when sold the product that A&L were not open about this charge, even though I made a comment regarding how much my previous lender wanted to exit the mortage I had then. Its as if it were conviently glazed over! I remortaged after their fee went up to £295.

waves117

Hi


I also have a A & L mortgage and was hoping to pay it off early - I also have found i will have to pay £295 "redemption admisinistration charge". I dont know if there is any way out of it? any thoughts?

wonder what the outcome of melting glasses situation was?

regards

UK007BullDog

Look at your mortgage offer letter you got at the time. If it states a lower fee then you only need to pay that fee. You might have to pay the full amount they want but then you claim it back.

If you remortgaged away to a new lender and that is the charge on the offer letter you signed then you would have to pay. If you remortgaged with the same lender, i.e. you did not borrow more then you might have to go back to the very first offer letter where there would be a much lower charge, that would be the one for you to pay.

But I might be wrong. Search the forum, as a number of people claimed money back.

Melting_glass

Due to the current climate I have kept on a small mortgage of about £500 just in case we decide we need some money as we would like to possibly buy some land and or put up a conservatory, but this is only a short term option.

However i did manage to speak to someone in branch at my local A&L who i believe was an area manager and he told me that it was possible to change the length of term for £25 avoiding the £295 charge. He said to state that it was not prohibited in the key facts (their rules booklet for mortgages).

I hopo this helps others, I will be taking up their offer in the next few months if we don't spend the money.