Early Repayment Fee HSBC

dean_g_shaw

Good morning all. 

I have an early repayment fee due on my old HSBC mortgage. However my Solicitor did not pay the early repayment fee as I took out a new fixed term with HSBC. My latest mortgage redemption statement states the following; 
‘4.3 - if your customer is taking a new fixed rate mortgage in the future:
Any Early Repayment fee will be refunded if the customer will be taking a new fixed rate mortgage with us within six months of the redemption of the existing loan, providing it is for at least the same amount, fixed rate and term as previously held. 

My lending has increased by ~£100k, my fixed rate has increased from 1.69% to 1.89% and the number of years has also increased. 

However, HSBC do not agree I am exempt from the early repayment fee. 

Admittedly I factored in the early repayment fee when choosing my product, however, this statement in my mortgage redemption statement indicates to me I am due a refund of the total Early repayment fee. Has anyone come across this before and would anyone know what my rights are? My Solicitor said they didn’t make the payment due to clause 4.3 but advised I spoke to financial adviser. I didn’t use any financial advise service when I took out the mortgage. 
Thanks in advance. 

Dean

davidmcn

dean_g_shaw said:

However, HSBC do not agree I am exempt from the early repayment fee. 

Have they explained why not?

TrickyDicky101

And can you check the T&Cs on your old (redeemed) mortgage as maybe that was different from the new one?

dean_g_shaw

davidmcn said:

dean_g_shaw said:

However, HSBC do not agree I am exempt from the early repayment fee. 

Have they explained why not?

They have said because my fixed rate and term is not the same I am not due the refund. The statement to me and my solicitor says for ‘at least’. I’ve now resulted in paying the money back and opening up a complaint. 

dunstonh

 My latest mortgage redemption statement states the following; 

Those will be the terms for the new mortgage.  What were the terms for the old mortgage?

[Deleted User]

The ERC is usually waived when porting the existing rate across to a new property.   If you opted to take a new rate then it is generally payable.

The bit you quoted is relevant when you have sold your property, paid the ERC, and then take a new mortgage within 6 months.    If you sell and buy at the same time then you need to port the existing rate across and they dont charge the erc

Thrugelmir

You haven't conformed to the terms quoted. What you should have done is port your existing mortgage then top up with additional borrowing with a new product. 

[Deleted User]

Sounds like you have just got tripped up by how porting works and the internal policies of the lender.   As you opted not to receive advice you will have no comeback on this through the lender unfortunately.  An advised service will have kept you on your lower rate and avoided the ERC  

I presume if the solicitor hasnt paid the ERC, the lender is now chasing you directly for this payment?   
You could make a complaint to the solicitor for messing up the calculation but im not sure if its in their remit to decide if you are liable for the erc. Maybe @davidmcn can clarify that part for us?  
 Presumably if they had told you you might be liable it would have given you a chance to go to the lender and sort it out prior to completion

To e honest this is another example of why i always tell people to go through advised services even if you get the same as you were going to do direct.  More people to blame if you dont get what you expect

davidmcn

Deleted_User said:

You could make a complaint to the solicitor for messing up the calculation but im not sure if its in their remit to decide if you are liable for the erc. Maybe @davidmcn can clarify that part for us?  

The solicitor can omit the ERC if it's clear from the redemption statement that it shouldn't be payable. If the wording quoted in the OP is what was in the statement sent to the solicitor, I can see why they would have omitted the ERC. I suppose it's possible that the bank have said something misleading in the redemption statement which contradicts the actual terms of the mortgage.