Help Needed On Ending Mortgage

uk_steve

Hi i have the following questions please

a very good friend of mine has a mortgage with Northern Rock which is fixed to early June 2008.. original mortgage was taken out in 2001 (20 or 25 years period)
now its getting nr that time of a close of the fixed rate the person in question wants to pay off the mortgage to a final close and be mortgage free for 2008

the whole mortgage which owed is less then £500 ,


i have just looked at the letter from Northern Rock i am thinking wow the Redemption Charge is £800.00 on its own :eek:

im wondering what is the best thing to do here?
because next mth the fixed rate comes to a close

is it best to go to another provider which the fee is a lot lower or is it a case that the price provided is rougthly about right?

its the 1st time i seen someone be in this postion and i thinking surly you can do this a lot cheaper?

i have atached a letter of breakdown

Speak soon

medic1978

Surely, wait until the fixed rate period ends and then pay off the mortgage. That way you don't pay the early redemption charge of £800

herbiesjp

uk_steve wrote: »

the whole mortgage which owed is less then £500 ,


i have just looked at the letter from Northern Rock i am thinking wow the Redemption Charge is £800.00 on its own :eek:

im wondering what is the best thing to do here?
because next mth the fixed rate comes to a close

is it best to go to another provider which the fee is a lot lower or is it a case that the price provided is rougthly about right?

Not sure what you are trying to do here -as you seem to making this far more complicated than it is.

YOu do not have to find another provider - you wouldn't be able to for only £500

Wait until the penalties have finished and then either move onto a new deal with the same lender or clear completely

Then enjoy being mortgage free

wymondham

as stated by medic, just wait until the fixed period is over, then pay it off without the charges......

I would add that as you now know they are mortgage free (ish), it will now be their round down the pub much more frequently!!

uk_steve

oh i must of missed read this letter :-0

So in June when its the end of the fixed rate then there is no £800 fee, that makes sence to me :-) i let the person know


its not the 1st time i make things complicated

Thank you

bryanb

Not sure but I think the early redemption fee may apply for the life of the mortgage ie 20 - 25 yrs.

TEDDYRUKSPIN

SOLUTION:

WAIT! Don't pay the ERC. You will have to pay the Title Deeds release fee with them though. Ranges from £75 to £250. Obviously claim it back afterwards. Do a search on this website.

uk_steve

bryanb wrote: »

Not sure but I think the early redemption fee may apply for the life of the mortgage ie 20 - 25 yrs.

Thats what i thought was the case myself

now i am confused:rotfl:


come on folks whats the deal here?;)

wymondham

uk_steve wrote: »

Thats what i thought was the case myself

now i am confused:rotfl:


come on folks whats the deal here?;)

If it is the case then what a bum deal! - To be 100% clear ask your friend to talk to their lender to clarify..... they could also claim as well as this is way ott!

dimbo61

check the terms and conditions which came with the mortgage
most ERC end with the fixed rate but you are talking NR !
read them carefully as the staff at the mortgage centre may not have all
the papers your friend has.
GOOD LUCK

uk_steve

Sorted got my friend to ring NR....It turns out the mortgage fixed rate ends on 01.06.08

the info above was the prices if the person was going to pay it off b4 or on the 31.05.08


i think it should be plain sailing with the new statement


I be hoping my friend does get some beers in, being mortgage free for 08:beer: