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Enowment payout and early redemption charges
angry2
Posts: 2 Newbie
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?
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?
0
Comments
-
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 freeAny posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.0 -
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.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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