Early settlement charge
in Reclaiming mortgage fees, council tax, etc
11 replies 291 views
Hi all. Hoping for some input here. Tied in on current mortgage for another 3 years but had an amazing offer on the house with substantial equity so decided to sell. Found a house that is the same i paid for my current and approached my lender with the proposal of porting the mortgage exactly as it is with me paying the difference to make it so. This new home reduces my partners daily commute to work from 1 hour 30 to 20 minutes daily so would have huge impacts on my affordability going forward along with improving reducing risks for again I quote no additional borrowing. This was refused on affordability due to credit card funded wedding expenses forcing me to get the mortgage with another provider on a better rate.
My question is, as my lender put me in a position where I either give them some of the equity to get a smaller mortgage with them or pay the £6k early settlement fee to go with someone else. They are actively preventing me from bettering my financial position despite being aware to all of this. The equity alone is 40k and thats life changing for me. I have asked them to surrender the equity and they have refused.
Any thoughts please peeps? I am aware I signed the contract but am asking purely from an ethical standpoint based on how much they dont make sense based on another lender giving me exactly what i want.
Latest MSE News and Guides
Martin and MSE campaign win
April's 20% energy price guarantee hike postponedMSE News
Childcare budget boost
More support for children from nine months and those on Universal CreditMSE News
Energy Price Guarantee calculator
How much you'll likely pay from AprilMSE Tools
I would have thought having a £40K smaller mortgage than you had previously was bettering your financial position.
I’m thinking you should try this line out and come let us know how you get on.
Thrugelmir - I appreciate the direct answer but can you offer an opinion on my prisoner angle? I am not leaving through my own choice now purely because they would not accept my exact same mortgage terms despite my improved financial gain through moving. I will endure hardship by staying and I see this as a real heartless move by the current lender. I thought they had a responsibility to help customers improve their financial situation when it clearly benefits them through reduced risk and in this case extra business through a savings account with substantial equity?
NearlyOld - Yes I am using some of my equity towards the purchase of my new property and you misunderstand. I wont have a 40k smaller mortgage and even if I did it wouldn’t be because of what my lender did because I can only achieve this through leaving and acquiring a mortgage elsewhere hence my issue.
I'd suggest the Debt Free Wannabe boards maybe worth a visit. As you need to help yourself first in order for others to see that you've changed your ways permanently.
There are odd occasions where some people have had the cost waived, but that will entirely depend on the specific circumstances of the loan, lender, term…etc. You might get lucky, but with three years left it’s not likely.