Early Redemption Charge

MusicLover

Hi

I realise that I'm grasping at straws here, but any advice would be much appreciated.

I have one year remaining of a 5 year fixed rate mortgage with Britannia Building Society. There is approximately £104,000 outstanding on the mortgage. I am currently in the process of selling the property as I am moving in with my partner.

I have received a Mortgage Redemption Quotation from Britannia detailing that I will be required to pay an early repayment charge of nearly £5,000 in accordance with my Offer of Advance.

The Offer of Advance dated 2003 states "We will charge an early repayment fee calculated on our standard variable mortgage rate which applies at that time on the amount that you repay. The early repayment fee will be:- In the first 5 years of your mortgage - 240 days interest."

My fixed rate is 4.64%. I pay under £8,000 in mortgage payments (capital and interest) per year. Therefore, it it eye watering to have to pay 240 days interest at their current standard variable rate.

I notice that Britannia have different terms and conditions on their current 5 year fixed rate. This only charges 1% on the amount that you repay early in Year 5 which seems much more reasonable.

Whilst I understand that Britannia have to make an early repayment charge, nearly £5,000 does seem a bit steep.

I realise that I will most likely have to pay up and put it down to experience. Afterall, I did foolishly sign up to these terms and conditions!!??!! However, any words of wisdom would be gratefully received as soon as possible. The property is being sold to first time buyers and therefore the conveyancing is whizzing along.

Many thanks for your time.

dmg24

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