Barclays Mortgage Exit Fees

tracyyi

I have a fixed 2-year mortgage with Barclays and have a "Mortgage Exit fee (payable on final repayment of the mortgage and is non-refundable) £80".

At the end of the 2-year mortgage, if I repay all the mortgage, do they still charge me £80 for the Mortgage Exit Fee?
Thank you.

sammyjammy

Yes, for whatever reason your mortgage ends the fee is payable.

tracyyi

Even at the end of the 2-year fixed rate, it still needs to pay the £80 mortgage exit fee?

BoGoF

tracyyi said:

Even at the end of the 2-year fixed rate, it still needs to pay the £80 mortgage exit fee?

If you pay off the mortage at the end of the fix (which you said you will be) then yes - their tariff fact sheet says this is payable if the mortgage comes to and end.

Fairly standard term.

tracyyi

If I did not pay off at the end of fixed 2 years, and then remortgage to other lenders when the fixed 2 year end? 
Do I need to pay the £80 mortgage exit fees?

kingstreet

Yes. The fee is payable;-

at the end of the mortgage term, not at the end of a fixed period
if you repay the mortgage in full at any time by any method (remortgage, lottery win etc.)

tracyyi

So if I change my mortgage term to 2 years, and finish it in 2 years, I do not need to pay  £80 mortgage exit fees?

Yes. The fee is payable;-

at the end of the mortgage term, not at the end of a fixed period
if you repay the mortgage in full at any time by any method (remortgage, lottery win etc.)

 

bluelad1927

tracyyi said:

So if I change my mortgage term to 2 years, and finish it in 2 years, I do not need to pay  £80 mortgage exit fees?

Yes. The fee is payable;-

at the end of the mortgage term, not at the end of a fixed period
if you repay the mortgage in full at any time by any method (remortgage, lottery win etc.)

 

It is payable when the mortgage is paid off whichever way you want to look at it. 

BoGoF

You will pay it at some point, one way or another. If you pay your mortgage off early you pay it. If your mortgage runs it's full term and is paid off you pay it. If you re-mortgage you pay it.

Hoenir

The fee is to cover the legal costs of the lender removing the mortgage charge from your property. 

kingstreet

The mortgage term isn't the term of a fixed rate etc. It's the whole length of the loan, 25 years, 30 years and so on...