Huge redemption fee.

[Olf]

A relation of mine is selling their house and have just been told the redemption fee on a fixed rate deal in the region of 10 on a 240k loan....

Before Tonker or Rich etc chime in with 'read the fking paperwork' which is of no value right now thanks... yes it was in the paperwork but it said 'you could be required to pay'...

The fixed rate is due to expire in September.

What's the best ploy do you reckon for negotiating this down?

[Soovy]

Olf said:

A relation of mine is selling their house and have just been told the redemption fee on a fixed rate deal in the region of 10 on a 240k loan....

Before Tonker or Rich etc chime in with 'read the fking paperwork' which is of no value right now thanks... yes it was in the paperwork but it said 'you could be required to pay'...

The fixed rate is due to expire in September.

What's the best ploy do you reckon for negotiating this down?

There isn't one, they'll have to suck it up, unless they can persuade the lender otherwise, which frnakly ain't gonn happen.



Honsetly, does no one read the paperw.......

Edited by Soovy on Friday 7th November 14:31

[King Herald]

Olf said:

A relation of mine is selling their house and have just been told the redemption fee on a fixed rate deal in the region of 10 on a 240k loan....

Before Tonker or Rich etc chime in with 'read the fking paperwork' which is of no value right now thanks... yes it was in the paperwork but it said 'you could be required to pay'...

The fixed rate is due to expire in September.

What's the best ploy do you reckon for negotiating this down?

Redemption fee? Is that the bill they give you for cutting out of the fixed rate deal?

[scotal]

King Herald said:

Olf said:

A relation of mine is selling their house and have just been told the redemption fee on a fixed rate deal in the region of 10 on a 240k loan....

Before Tonker or Rich etc chime in with 'read the fking paperwork' which is of no value right now thanks... yes it was in the paperwork but it said 'you could be required to pay'...

The fixed rate is due to expire in September.

What's the best ploy do you reckon for negotiating this down?

Redemption fee? Is that the bill they give you for cutting out of the fixed rate deal?

That's it, and its set in stone.

[Soovy]

scotal said:

King Herald said:

Olf said:

A relation of mine is selling their house and have just been told the redemption fee on a fixed rate deal in the region of 10 on a 240k loan....

Before Tonker or Rich etc chime in with 'read the fking paperwork' which is of no value right now thanks... yes it was in the paperwork but it said 'you could be required to pay'...

The fixed rate is due to expire in September.

What's the best ploy do you reckon for negotiating this down?

Redemption fee? Is that the bill they give you for cutting out of the fixed rate deal?

That's it, and its set in stone.

There we are - horse's mouth.

Sorry.

[scotal]

Mind you, it dpeends who the lender is......some might be more forgiving at the moment, but I doubt it.

[Adam B]

3 main things to look at in any mortgage

upfront rip-off fees
interest rate quoted / period
hangover commitments and redemption fees

Its not that hard surely.

Mine was 9k (3% of original loan) so I waited until its over, or would have ported to new property and then waited

[f13ldy]

swerni said:

Transfer the mortgage onto the new house.
Then in September get a new deal

He has 3 options:

1) Wait till September before moving;

2) Read the paperwork

3) Do as Swerni says.

[King Herald]

scotal said:

Mind you, it dpeends who the lender is......some might be more forgiving at the moment, but I doubt it.

I'd guess that negotiating the new mortgage with the same people might help, along with the threat that you'll 100% take your mortgage elsewhere if they do insist on the full 10k.

[GreatGranny]

/\/\/\/\/\/\/\/\/\/\

What he said.

if they have a £240k mortgage and need say an additional £50k to move then they may have to borrow the additional at the lenders base rate which may be a bonus!

[pies]

Is the mortgage a "portable" one?

[Olf]

The person won't be taking a new mortgage. It's actually about taking the responsible action now the world has changed - their income stream has all but dried up and it's a case of pulling the equity which should be about 50% out before things get serious. So portability or the promise of new business isn't going to work unfortunately.

[pdV6]

In which case, do they want to sit on the mortgage for another year or simply accept that they're going to get £110k equity rather than £120k?

[Olf]

pdV6 said:

In which case, do they want to sit on the mortgage for another year or simply accept that they're going to get £110k equity rather than £120k?

Well yes that's what it boils down to. Interesting to hear from Scotal though that these things are cast in stone. We'll give it a go there are a couple of 'circumstances' to consider including loss of spouse. We'll see where we get.

[Soovy]

Olf said:

pdV6 said:

In which case, do they want to sit on the mortgage for another year or simply accept that they're going to get £110k equity rather than £120k?

Well yes that's what it boils down to. Interesting to hear from Scotal though that these things are cast in stone. We'll give it a go there are a couple of 'circumstances' to consider including loss of spouse. We'll see where we get.

A bit strong to slot the wife just to save £10k.

[5pen]

The Woolwich waived one for me, but it was within 10 days of the redemption penalty period ending. (Was nowhere near £10k either - less than £1k if I recall)

[Olf]

swerni said:

Soovy said:

Olf said:

pdV6 said:

In which case, do they want to sit on the mortgage for another year or simply accept that they're going to get £110k equity rather than £120k?

Well yes that's what it boils down to. Interesting to hear from Scotal though that these things are cast in stone. We'll give it a go there are a couple of 'circumstances' to consider including loss of spouse. We'll see where we get.

A bit strong to slot the wife just to save £10k.

will do it for £8k but don't tell anyone

Well I was actually thinking of the bank managers wife.

[Soft Top]

A 240k loan would attract over 10k in interest over the next year at 5% which if they are on a fixed rate deal could be optimistic. Effectively pay the interest and live in the property for the year without having to pay the fee AND rent - probably cheaper.

Of course the house may be worth less next year!

[voyds9]

Soft Top said:

A 240k loan would attract over 10k in interest over the next year at 5% which if they are on a fixed rate deal could be optimistic. Effectively pay the interest and live in the property for the year without having to pay the fee AND rent - probably cheaper.

Of course the house may be worth less next year!

Or perhaps worthless if predictions are to be believed.

[BB-Q]

What's the market like there? Chances are it'll take until next September to sell anyway, unless it's priced very nicely.

They're not going to get out of it so they might as well bend over and take it if they have to sell now.