Unfair early redemption

[Deleted User]

@ACG I'm not talking about overpayment charges, it's the calculation for early redemption. If you read further up the thread, you'll see what I mean.

[Deleted User]

For what its worth, there are also high street lenders that charge a 5% penalty on the original amount borrowed on a 5year fixed right up to the last day of the 5 years.   No concession for how long they've had it or how much is left owing. 

People have taken that one to the ombudsman and failed as it was what they agreed to when they took the money.  

davidmcn

Missu said:

It's ok, I've moved on from that point. As I've said a few times (see above) , my complaint is about the phone call giving me misinformation and that they are calculating the early redemption on a balance from a year ago.

Yes, I realise that. But we can't see your paperwork to see what it says about how they calculate the early redemption.

csgohan4

Missu said:

It's ok, I've moved on from that point. As I've said a few times (see above) , my complaint is about the phone call giving me misinformation and that they are calculating the early redemption on a balance from a year ago.

You may get a token gesture for alleged misinformation, but what matters is what you agreed on your mortgage offer/ mortgage statement, this will be what defines your ERC/ redemption charge.  So what does it say on your mortgage offer/statement regarding this?

dunstonh

If you have been given incorrect information over the phone, they will not waive the ERC.  They will apologise for the error and pay you £25 or thereabouts for the inconvenience.
If you are overpaying, then its not unusual to use the starting balance for that year rather than the balance at the point of redemption.

Unicorn_cottage

Help us to help you - what does it say in your key facts re early redemption calculation?

[Deleted User]

@unicorn cottage - as I've already explained - the only detail is the breakdown of % in each year .
As I've also said, I'm happy to wait until July to avoid the charge. It would be helpful to read the whole thread. I am 
awaiting a response to my complaint and will feedback to this post then.

Unicorn_cottage

@Missu Do you have a Key Facts document? Have you read section 11? What does it say? Here's mine which makes it clear that if I overpay more than 10% in any 1 year, (in this instance amount owed at 1 April, then early repayment charges will apply:
"11. What happens if you want to make overpayments?
Overpayments are permitted on this mortgage. A lump sum overpayment can only be made by cheque and is any amount that
you pay to us in addition to the monthly payment due. When we receive a lump sum overpayment, we recalculate the amount
you owe and the amount of interest you pay with effect from the following day. This means you get the benefit of paying less
interest straight away. Regular overpayments can only be made by standing order and are amounts that you pay to us each
month in addition to the normal monthly payment. When we receive a regular overpayment, we recalculate the amount you owe
and the interest you pay from the first of the month after we receive the overpayment. The amount you owe will not be reduced
immediately. Early repayment charges may apply and we charge an administration fee (currently £50) on each occasion
– please refer to section 10 for details. However, during each financial year you can make lump sum and/or regular
overpayments that will not incur an early repayment charge or an administration fee providing that (1) each lump sum
overpayment is not less than £500 and (2) the total amount repaid does not exceed 10% of the amount owed at 1 April.
If an overpayment is made which causes the total amount overpaid to exceed 10% then the whole of that overpayment
will be subject to any early repayment charge due and an administration fee will be payable."

alidai

Missu said:

@unicorn cottage - as I've already explained - the only detail is the breakdown of % in each year .
As I've also said, I'm happy to wait until July to avoid the charge. It would be helpful to read the whole thread. I am 
awaiting a response to my complaint and will feedback to this post then.

@Missu, it’s incredibly frustrating that when asked to provide detailed information so that posters can help you, you continue to say “it says this...” and provide the information in your own words.  This does not help as to be of any help to you, people need to see the EXACT wording of what you have signed up to.

Unfortunately this doesn’t just apply to you, but many posters who do this same thing.

I’m happy you’ve clarified that point yourself, but for anyone to help about the date when the balance should be calculated from, again, the exact wording of the contract is needed.

davidmcn

Missu said:

It would be helpful to read the whole thread.

It would be helpful if you quoted verbatim what your documentation says, like you've been asked several times, rather than dodging the question.