mortgage redemption

[blueboris]

hi
im just about to sell my house and i have been told that there is a 6% redemption charge on the selling price,i know i should have read the small print but i didnt as it was a friend that did it for me. my question is - is there anything i can do about getting round this atall,such as the bank charges that are going on at the moment?
regards
dave

[Oneeyedvic]

Short answer - NO.

You would have had a fixed rate of interest for the period and the penalty for that is the redemption charge.

The only way you may be able to reduce it is by transferring your mortgage to a new property - generally lenders won't mind doing this.

[blueboris]

i didnt have a fixed rate it was non status

thanks

[Oneeyedvic]

ah okay - but still no (AFAIK) - the reclaiming of the bank charges are an issue regarding proportional charges for penalties - it is hard to justify a letter costing �35 when the cost is less than �5. It is easier to justify in non status lending as very simply, it is a high risk industry.

Being honest, it might be worth a try, but I wouldn't hold out much hope.

[dancecaller]

I've just heard that Money box on radio 4 at noon tomorrow (repeated Sun or on listen again) is covering this.
http://news.bbc.co.uk/1/hi/programmes/moneybox /6411577.stm
Hope they can give you some good news

[dancecaller]

http://news.bbc.co.uk/1/hi/business/6405039.st m
This is a better link

[dancecaller]

I ;istened to that programme, they said banks are repaying the redemption charges if they are more than you were told when you took the mortgage out. So its worth asking. (And if you can't remember what they said it would be, ask anyway and they'll look it up)