paying mortgage early £10,000 fee???

cogster_2

My sister and boyfriend, only after months, have split up and are selling their house. I believe their mortgage was with TSB.

She has just called and told me that the bank is charging them 10 grand!!!

Is this right?

tigtag02

It i if its in the t&c's of the mortgage

Some do have early repayment fees

_Andy_

cogster wrote: »

My sister and boyfriend, only after months, have split up and are selling their house. I believe their mortgage was with TSB.

She has just called and told me that the bank is charging them 10 grand!!!

Is this right?

Yes it's an early repayment charge, part of the terms and conditions they agreed to when they took the mortgage out. Not worthy of three exclamation marks really.

firesidemaid

is there much equity in it? can either one buy the other out?

if not, can one have it signed over to them and live in it and rent a room out to assist in paying the mortgage?

beecher

I know the TSB have ERCs of about 7% for their 5 year fixed which could easily come in at £10,000 if they've only had it months.

glen8

They split up after only living in the house for a few MONTHS!!

I'd tell them to get back together

dunstonh

Because they wanted a special deal which would be typically cheaper than the standard variable rate, the bank were prepared to do this provided they tied themselves into a deal that had early exit charges. Quite valid and legal and understandable when you realise the costs and profit to the lender.