Can i get out of this?

carl310166

In dec 2003 (before MSE days!) i took out a cashback mortgage with Chelsea.

I would like to change to an offset or flexable mortgage in the future,but i am tied to Chelsea until dec 2008.

The only option,which i can see myself doing,unless there is another way,is to pay them approx £2600 as an early repayment charge.

I understand their point of view,but is there a way i can reduce by negotiation? or avoid paying this fee?

I would like to point out,i am in the middle of borrowing 10k @ 0% at the moment,so i don't want to do anything until May 2006,when the option of borrowing the £2600 @ 0% was going to be my plan.

The reason for changing before 2008 was that i wanted to really hammer the capital down with overpayments,so i would save the £2600 in the long run,unless of course,i have misscalculated!

Any ideas?

Thanks in advance.

dunstonh

I understand their point of view,but is there a way i can reduce by negotiation? or avoid paying this fee?

Extremely unlikely. After all , you did sign a contract agreeing those terms. Those terms would have been confirmed to you by a solicitor (assuming you chose to use one). I can't see any arguement you could use to get them to reduce them.

Also, look at what you are saying to them.. I want you to reduce your charge as I want to take my mortgage elsewhere. Therefore you would get less redemption penalty and no interest any more. In their position, would you agree to it?

carl310166

dunstonh wrote:

Extremely unlikely. After all , you did sign a contract agreeing those terms. Those terms would have been confirmed to you by a solicitor (assuming you chose to use one). I can't see any arguement you could use to get them to reduce them.

Also, look at what you are saying to them.. I want you to reduce your charge as I want to take my mortgage elsewhere. Therefore you would get less redemption penalty and no interest any more. In their position, would you agree to it?

Probably not!

But as you correctly say,i signed the agreement so i am bound it.

carl310166

Sorry,meant to say

"bound BY it"

KTF

It might be worth asking if you can change to another product on their portfolio that is a closer match to your needs.

Whilst it may not be ideal, you might be able to avoid some of the charges.