Mortgage - Early redemption fees, options?
Discussion
jonah35 said:
Poor banks cant win. You were happy to borrow the money and you should read the terms.
Stop trying to wiggle out of it.
Sorry to be harsh but people want everything their own way.
I have sympathy for your situation OP, but you can't take out a product, and then complain later that the terms don't suit you. Ultimately all you can so is plead extenuating circumstnaces to your mortgage company and hope they look favourably upon your your situation. Stop trying to wiggle out of it.
Sorry to be harsh but people want everything their own way.
Mortgages are complicated, but when I took out my mortgage I was given a summary which contained all the key info (including charges) which I read pretty carefully. Were you not given something similar? It just amazes me that someone will enter into a 25 year contract worth hundreds of thousands of pounds without even reading a summary!
CaptainSensib1e said:
jonah35 said:
Poor banks cant win. You were happy to borrow the money and you should read the terms.
Stop trying to wiggle out of it.
Sorry to be harsh but people want everything their own way.
I have sympathy for your situation OP, but you can't take out a product, and then complain later that the terms don't suit you. Ultimately all you can so is plead extenuating circumstnaces to your mortgage company and hope they look favourably upon your your situation. Stop trying to wiggle out of it.
Sorry to be harsh but people want everything their own way.
Mortgages are complicated, but when I took out my mortgage I was given a summary which contained all the key info (including charges) which I read pretty carefully. Were you not given something similar? It just amazes me that someone will enter into a 25 year contract worth hundreds of thousands of pounds without even reading a summary!
Good luck though but banks often get unfair press when really its down to the consumer just not reading things.
I think caveat emptor should apply more.
Guys,
I'm not wriggling at all. I was simply seeking some clarification on a detail I was a little surprised by; the lack of a ratchet down over the fixed period.
It is what it is. I can wear it, I'm a big boy. I'm not going to go whinging back to the advisor!
This isn't my first mortgage and I may have been a bit scant on my usual due diligence. But as I hinted at earlier this was all done at a very difficult time when my priorities were elsewhere.
I'm not wriggling at all. I was simply seeking some clarification on a detail I was a little surprised by; the lack of a ratchet down over the fixed period.
It is what it is. I can wear it, I'm a big boy. I'm not going to go whinging back to the advisor!
This isn't my first mortgage and I may have been a bit scant on my usual due diligence. But as I hinted at earlier this was all done at a very difficult time when my priorities were elsewhere.
Edited by DoubleSix on Wednesday 17th September 14:55
CaptainSensib1e said:
It just amazes me that someone will enter into a 25 year contract worth hundreds of thousands of pounds without even reading a summary!
It's not though, is it.It's really for the term of the fix - only a total loon stays on SVR.
To Jonah - I honestly believe the banks deserve some of the grief here.
IMHO plenty of people were conned into mortgages that simply weren't affordable.
We didn't have them here but look up the neg-am >100% mortgages available in the US pre-crisis.
The line used to be that you didn't need to worry about the rate beyond the teaser because you could simply remortgage and cover the fees with the equity as your house rose in value.
If you were being offered a first time home with no money down and a low affordable monthly rate - I can well believe you wouldn't worry much about the small print.
The people selling the product are supposed to be ADVISORS not SALESMEN!
The onus should be on them to make sure people understand not just rely on them to plough through an often complicated legal document.
Of course, all PH directors know to RTBQ but the duty of care goes both ways.
DoubleSix said:
Guys,
I'm not wriggling at all. I was simply seeking some clarification on a detail I was a little surprised by; the lack of a ratchet down over the fixed period.
It is what it is. I can wear it, I'm a big boy. I'm not going to go whinging back to the advisor!
This isn't my first mortgage and I may have been a bit scant on my usual due diligence. But as I hinted at earlier this was all done at a very difficult time when my priorities were elsewhere.
Fair enough, best of luck getting it sorted.I'm not wriggling at all. I was simply seeking some clarification on a detail I was a little surprised by; the lack of a ratchet down over the fixed period.
It is what it is. I can wear it, I'm a big boy. I'm not going to go whinging back to the advisor!
This isn't my first mortgage and I may have been a bit scant on my usual due diligence. But as I hinted at earlier this was all done at a very difficult time when my priorities were elsewhere.
Edited by DoubleSix on Wednesday 17th September 14:55
walm said:
I honestly believe the banks deserve some of the grief here.
IMHO plenty of people were conned into mortgages that simply weren't affordable.
We didn't have them here but look up the neg-am >100% mortgages available in the US pre-crisis.
The line used to be that you didn't need to worry about the rate beyond the teaser because you could simply remortgage and cover the fees with the equity as your house rose in value.
If you were being offered a first time home with no money down and a low affordable monthly rate - I can well believe you wouldn't worry much about the small print.
The people selling the product are supposed to be ADVISORS not SALESMEN!
The onus should be on them to make sure people understand not just rely on them to plough through an often complicated legal document.
Of course, all PH directors know to RTBQ but the duty of care goes both ways.
Are you for real? People were conned into buying houses? I'm not saying the banks were entirely blameless, but how about people take a bit of personal responsibility? People were so desperate to buy houses they would lie about their earnings just to get a mortgage. As you say, it goes both ways.IMHO plenty of people were conned into mortgages that simply weren't affordable.
We didn't have them here but look up the neg-am >100% mortgages available in the US pre-crisis.
The line used to be that you didn't need to worry about the rate beyond the teaser because you could simply remortgage and cover the fees with the equity as your house rose in value.
If you were being offered a first time home with no money down and a low affordable monthly rate - I can well believe you wouldn't worry much about the small print.
The people selling the product are supposed to be ADVISORS not SALESMEN!
The onus should be on them to make sure people understand not just rely on them to plough through an often complicated legal document.
Of course, all PH directors know to RTBQ but the duty of care goes both ways.
DoubleSix said:
I believe the former. Haven't made any overpayments.
My ERC is 3% for the fixed period so it's pretty standard deal you have. It's just a shame you're tied for 5 years and the the ERC charge is 5%!As others have said, hopefully you can delay the sale or rent out the property instead. If those things aren't possible, you'll have to accept that that amount will come out of the money you'll get back.
If you can make any overpayments now, do it - it will reduce the ERC. Not by much but it'll be something.
456GT said:
Do you have to pay 5% of the remaining balance or the inital mortgage amount? It's usually the former. If you're able to, have you overpaid the maximum you're allowed to?
Yep, but all have their quirks.As posted some allow 10% PA overpayments before it kicks in, some have a reducing ERC to 0 at the end of the fixed rate. It really is a question of reading the 10 page (and I am including the special conditions on the offer I just double checked) offer of loan.
I best not post up even a redacted copy of the relevant section of a Clients offer to illustrate my point (Sarnie may have a 'specimen' one he can) but it's not exactly hidden deep in the T&C's like the little gems such as you being required to notify the lender if you commence any building works at the security address which require Planning Permission...
CaptainSensib1e said:
Are you for real? People were conned into buying houses?
Shiny suits convince people to do things against their best interests all the time.Believe it or not some people were ADVISED to lie about their income.
Seriously!
www.moneyadviceservice.org.uk said:
Mis-sold mortgage examples:
You were advised to overstate your income in order to borrow more.
You were given a fixed-rate mortgage and told to remortgage to a better deal later on, then incurred penalties for leaving the fixed rate early.
You were advised to overstate your income in order to borrow more.
You were given a fixed-rate mortgage and told to remortgage to a better deal later on, then incurred penalties for leaving the fixed rate early.
Took a 10 year fix and the ERC is pretty fierce at 7% for 5 years and then dropping 1% a year until the fix is over. Went into this with our eyes open, mortgage portable, bank account for borrowing money back, gives a lot of security on one hand and a kicking if we do decide to move or sell up on the other hand.
I Just hope YBS don't change the rules on borrowing back like Northern Rock, borrowed a shed load, repaid a load on the understanding we could get access to this at any time & when needed got shafted as they'd changed the rules around affordability rules, much harsher than when the mortgage was taken out. Really felt like this was misold, but you live and learn.
I Just hope YBS don't change the rules on borrowing back like Northern Rock, borrowed a shed load, repaid a load on the understanding we could get access to this at any time & when needed got shafted as they'd changed the rules around affordability rules, much harsher than when the mortgage was taken out. Really felt like this was misold, but you live and learn.
thepeoplespal said:
Took a 10 year fix and the ERC is pretty fierce at 7% for 5 years and then dropping 1% a year until the fix is over. Went into this with our eyes open, mortgage portable, bank account for borrowing money back, gives a lot of security on one hand and a kicking if we do decide to move or sell up on the other hand.
I Just hope YBS don't change the rules on borrowing back like Northern Rock, borrowed a shed load, repaid a load on the understanding we could get access to this at any time & when needed got shafted as they'd changed the rules around affordability rules, much harsher than when the mortgage was taken out. Really felt like this was misold, but you live and learn.
Any money you borrow now is on the basis on current legislation & criteria..........ANY money you apply to borrow at a later date will be subject the legislation & criteria at that point in time....I Just hope YBS don't change the rules on borrowing back like Northern Rock, borrowed a shed load, repaid a load on the understanding we could get access to this at any time & when needed got shafted as they'd changed the rules around affordability rules, much harsher than when the mortgage was taken out. Really felt like this was misold, but you live and learn.
If we slipped into another credit crunch, anything could happen......
456GT said:
DoubleSix said:
I believe the former. Haven't made any overpayments.
My ERC is 3% for the fixed period so it's pretty standard deal you have. It's just a shame you're tied for 5 years and the the ERC charge is 5%!As others have said, hopefully you can delay the sale or rent out the property instead. If those things aren't possible, you'll have to accept that that amount will come out of the money you'll get back.
If you can make any overpayments now, do it - it will reduce the ERC. Not by much but it'll be something.
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