Mortgage early redemption charge - how much?
14 January 2004, 10:10 PM
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How much is the "average" mortgage redemption charge?
I have a current account type loan over here with Barclays, nice low rate, but they want a 2% early redemption charge. On quarter of a million quid, that's pretty painful. (I think it's the market norm over here).
As I contest this, I'd like to have an idea of a fair alternative. Could you let me know if that's average, way over the top, or quite a good deal in the UK?
Cheers
Brendan
I have a current account type loan over here with Barclays, nice low rate, but they want a 2% early redemption charge. On quarter of a million quid, that's pretty painful. (I think it's the market norm over here).
As I contest this, I'd like to have an idea of a fair alternative. Could you let me know if that's average, way over the top, or quite a good deal in the UK?
Cheers
Brendan
14 January 2004, 10:13 PM
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Mine with Std Life is 6 months interest....which over a 25 year term, would be 2% I guess (1/50 of interest payable?) - well, sort of I guess....
6 months interest will not be 2% of mortgage value though....
So, does sound a bit high.
[Edited by imlach - 1/14/2004 10:14:11 PM]
6 months interest will not be 2% of mortgage value though....
So, does sound a bit high.
[Edited by imlach - 1/14/2004 10:14:11 PM]
14 January 2004, 10:41 PM
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Barclays charged me nearly £9,000 penalty for repaying one month early. I phoned up and queried it and they said "OK, we'll refund it then"
Are you planning on keeping other business with them or not? You would be amazed at how flexible they can be if they want to keep your business.
Are you planning on keeping other business with them or not? You would be amazed at how flexible they can be if they want to keep your business.
15 January 2004, 09:21 AM
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Ta imlach.
Crapaud, trouble is, one month early is not the same as 10-15 years early . However, I now have a lot of people in the office asking me about it, and I'm making it clear to Barclays (who are new here, and pushing for business) that I'll be pleased to recommend them IF they honour what they promised.
WF, changing isn't the problem, it's when I want to sell and move away after the job finishes. Famous last words, but I don't expect to be here for life...
Crapaud, trouble is, one month early is not the same as 10-15 years early
. However, I now have a lot of people in the office asking me about it, and I'm making it clear to Barclays (who are new here, and pushing for business) that I'll be pleased to recommend them IF they honour what they promised.WF, changing isn't the problem, it's when I want to sell and move away after the job finishes. Famous last words, but I don't expect to be here for life...
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