ferguson_tom Posted November 24, 2015 Report Share Posted November 24, 2015 Hi Everyone Just wondering if anyone can offer some wisdom on the thieving ******** that are mortgage companies. We are selling our house and moving into rented for a short while as I have been offered a new job a relocating to suffolk. One issue I have is the mortgage company have an early repayment charge of around 5k if we settle before May 2016. Stupid thing is the interest the would earn between now and then is only around 2.3k. Is there anyway of offering to pay the interest instead of the early repayment charge which i think would be fair as it was a fixed term? Its with Nationwide. Just annoys me they do it as they have me over a barrel if i want to sell before May 2016 :( Thanks in advance Tom Quote Link to comment Share on other sites More sharing options...
V8 90 Posted November 24, 2015 Report Share Posted November 24, 2015 Couldn't you sell after May 2016 ? I know the early settlement charges are horrendous- if you're getting a relocation package that may help with the charge. Quote Link to comment Share on other sites More sharing options...
zx10mike Posted November 24, 2015 Report Share Posted November 24, 2015 is it a percentage of outstanding balance ? if so go in pay 90 of outstanding then 1 month later go in and close the mortgage.thats how it works with loans in my experience. Quote Link to comment Share on other sites More sharing options...
loriusgarrulus Posted November 24, 2015 Report Share Posted November 24, 2015 Why not see if you can negotiate a deal against a new mortgage in advance with them. I assume you are only going into rented till you have found somewhere to buy you like. Quote Link to comment Share on other sites More sharing options...
dawntredder Posted November 24, 2015 Report Share Posted November 24, 2015 I had loans totaling 33,000 I had to pay 9,000 early settlement fee...I always thought it was a scam but had to pay :-/ Quote Link to comment Share on other sites More sharing options...
twitchynik Posted November 24, 2015 Report Share Posted November 24, 2015 Nationwide are very clear with their charges as are all lenders. There is no barrel and you're not being held over it! Perhaps you didn't read and/or understand the key facts..! Assume you've looked at renting, even just short term until ERC period is up? Even if giving the house over to an agent to make it rentable (safety checks etc) will cost a few quid it's not going to be £5k and you'll likely get a bit more back in equity when you need to sell it next year. Quote Link to comment Share on other sites More sharing options...
Archie-fox Posted November 24, 2015 Report Share Posted November 24, 2015 After my divorce the early repayment fee was £5,000 I could only get round this if I bought a house again within 90 days and used the same mortgage company.. Could you not rent yours out till after the date then sell up? Quote Link to comment Share on other sites More sharing options...
johnlewis Posted November 24, 2015 Report Share Posted November 24, 2015 I paid mine off early which had been fixed rate waited till the early repayment clause was less than the interest that I would have paid if the mortgage ran full course there is no way around it. Quote Link to comment Share on other sites More sharing options...
ferguson_tom Posted November 25, 2015 Author Report Share Posted November 25, 2015 Thanks everyone, i thought this might be the case. I wouldnt mind so much but the interest they would earn between now and the end is only £2300 (which i would be happy to pay) so even though the're getting the money back sooner they are charging me more for it!! O well it has meant we are now not in so much of a rush to sell the house and can wait out for our full asking price rather than doing a deal for a quick sale which would make up the repayment fee. We have looked at the renting option but for the short term it is not worth the risk as if the doo doo did hit fan with either broken boiler etc or tennants causing damage we would not be able to pay to fix it. Quote Link to comment Share on other sites More sharing options...
Twistedsanity Posted November 25, 2015 Report Share Posted November 25, 2015 Have you checked the small print? Our mortgage allows us to pay a lump sum of our choosing every January without a penalty charge or fee but we can't do it any other time Quote Link to comment Share on other sites More sharing options...
rimfire4969 Posted November 25, 2015 Report Share Posted November 25, 2015 Have you checked the small print? Our mortgage allows us to pay a lump sum of our choosing every January without a penalty charge or fee but we can't do it any other time As I think someone else said, can you not sell the house pay off 90% of the mortgage then let the other 10% run until your date comes around. (I have no idea how mortgages work got rid of mine years ago, speak to a Financial advisor) Quote Link to comment Share on other sites More sharing options...
scouser Posted November 25, 2015 Report Share Posted November 25, 2015 When I retired I though t I would pay off the mortgage, I was told about the redemption fee, so ****** that I kept back £200, and had them adjust the repayments to suit for the remaining term of the mortgage Quote Link to comment Share on other sites More sharing options...
BrowningB525 Posted November 25, 2015 Report Share Posted November 25, 2015 At the end of the day, if you're in a deal, you have to wait until the end or pay the fee. We re mortgaged and had to pay £2k to buy out. It still saged us money as the house was on a horrific mortgage. Quote Link to comment Share on other sites More sharing options...
daveboy Posted November 25, 2015 Report Share Posted November 25, 2015 Looking at it from the mortgage company point of view if they didn't have a fee everybody would re-mortgage as soon as the rate went down and would stay with the fixed rate if it went up. Quote Link to comment Share on other sites More sharing options...
ferguson_tom Posted November 25, 2015 Author Report Share Posted November 25, 2015 Looking at it from the mortgage company point of view if they didn't have a fee everybody would re-mortgage as soon as the rate went down and would stay with the fixed rate if it went up. Yer i understand that but my point is the interest I will be paying between now and May would be £2300 which is the money they would have earnt if carried on with the mortgage to the end, which I would be happy to pay so they still earn as much money out the deal as always expected. With the early repayment fee they are earning £5000 so more than double the interest over the rest of the term plus getting their money back sooner. Its one of those things and i accept as i signed on the dotted line, in a years time i would have forgotton all about it....just bloody annoying at the moment. Quote Link to comment Share on other sites More sharing options...
bruno22rf Posted November 25, 2015 Report Share Posted November 25, 2015 How long has the mortgage been running? To be legally binding the ER fee must have been bought to your attention when you signed the paperwork. Quote Link to comment Share on other sites More sharing options...
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