Early redemption charges for Mortgages.

[cheries]

Hello. Can anyone tell me if I might be in with a chance of getting a refund for an early redemption charge of �5,100 on a mortgage of �71,000 in 2002? I was devestated when I had to pay it as it represented a huge amount to me.
Thank you, Cherie S.

[annie0000]

If it was in the contract that you agreed to, then unless you can prove that you weren't made aware of it or it is unfair, then I don't think you can. The lender has given you a discounted rate presumably and the protection that they have built in is that they need the mortgage to run for X years in order to achieve the required profit. If they did not apply early redemtion charges, they would not offer any mortgage deals. Presumable at the time, you would have had a choice of mortgages and chose this one which unfortunately has this charge. You can submit a complaint, and they have a duty to investigate and respond to that complaint.

That does seem quite a high charge for a mortgage that has been running for that long - I make it over 7% - are you sure that you have been charged the correct rate?

[cheries]

Thanks for answering my question Annie. I am in the process of trying to ascertain whether the 7% is correct. I have contacted the solicitor who dealt with the sale of the property to find out more. I shall keep you posted!!
Thanks again.

[annie0000]

Yes, let me know how you get on - I work in financial services and I therefore understand the need for these charges to be there, but either you got some hell of a deal on your Mortgage, or there is something amiss.

http://www.ukpersonalloanstore.co.uk/early_red emption_penalties_ripped_off.html