Q: Help!
We sell our house in the capital to use to repay debt, BUT mortgage company called this morning and thought I was near ￡ 5k advance payment to make!
When we were sold via a broker, I am sure that we were told the fee would be only ￡ 750. So am more than a little shocked to have this amount!
Any ideas (if any) lower this? Its such a huge amount!
Also when very demorallising you realize that you already pay mortgage for more than one years and have ￡ 1.84 interest instead of making a dent!
Going agreement to read tonight, but I know Martin recommends not paying the mortgage off in full ie ￡ 50 to leave to avoid paying the admin fee – would apply to that commission as well?
HELP!
A:It often says somewhere on your mortgage statement what the redemption penalities are. It will also be on the initial terms you got with the offer of mortgage. Check your back paperwork and see if this figure is correct. Otherwise I would advise as above.
A:If you are buying another house then as said above port the mortgage. If not you will have to pay.
A:If you take out a discounted product, the mortgage company needs a guarantee that you are going to pay enough in interest to qualify the discount they give you. That will take the form of a tie-in period which is often around the same term of your discount or fixed rate period. If you redeem the mortgage earlier, you have to effectively re-imburse that discount, plus the £750 admin fee.
I don't think there's any way at all of escaping that fee unless you are able to downsize and take the mortgage with you (asking very nicely as it won't be standard practice I imagine.
With a repayment mortgage, you ALWAY pay very little off the capital on the first few years. There eventually comes a point where it crosses and you're paying more of the capital and less interest.