Enowment payout and early redemption charges

angry2

Fixed rate mortgage matures dec.08; first endowment(40%) pays out june 08.
We have to pay early redemption penalty on this according to our lender.

We were aware of early redemption penalties but were never told this applied to endowment payout.

Any way round this?

payless

Complain if you are sure you were told no penalty if using maturity funds

Make use of any "penalty free overpayment allowance"

Bank it until penalty free

dunstonh

A complaint would almost certainly be rejected. The FOS typically allow up to 12 months as a difference.

The differences occur when people remortgage or move and take a replacement mortgage. i..e took mortgage out in June originally, moved house in October a few years later then remortgaged in December. So the tie in ends up in December and not the date when the original mortgage was set up.

You should bank it until the penalty no longer applies.