First Direct Mortgage redemption charges advice PLEASE!
Discussion
Ok where do I start? I have just accepted an offer on my property...at the same time as I was made redundant, and am moving into rented accommadation as the bank will not lend me any money without a job!
I have a 5 year fixed with First Direct and have two years left on the deal. They want 3% early redemption on the original amount lent of £135,000 (£4k) Is there any way I can reduce the percentage I pay back?
After selling the house we will have about £50k in the bank, will threatening them with taking our money elsewhere make them negotiate a better deal for us?
Forgot to mention it's a offset mortgage so theres no point keeping FD if we don't have a mortgage.
Any advice would be great.
I have a 5 year fixed with First Direct and have two years left on the deal. They want 3% early redemption on the original amount lent of £135,000 (£4k) Is there any way I can reduce the percentage I pay back?
After selling the house we will have about £50k in the bank, will threatening them with taking our money elsewhere make them negotiate a better deal for us?
Forgot to mention it's a offset mortgage so theres no point keeping FD if we don't have a mortgage.
Any advice would be great.
Have you contacted FD to discuss this yet?
I think FD would wish to keep you as a customer, especially if their Treasury has £50K of your money to "play with".
I've always been impressed with their service, although I've not had a mortgage with them, even when I was over my OD & CC limits many years ago. They helped me out.
ETA: Hope the job sit is resolved quickly!
I think FD would wish to keep you as a customer, especially if their Treasury has £50K of your money to "play with".
I've always been impressed with their service, although I've not had a mortgage with them, even when I was over my OD & CC limits many years ago. They helped me out.
ETA: Hope the job sit is resolved quickly!
Edited by 5potTurbo on Friday 24th September 14:41
You can pay as much as you like of the offset mortgage so I would have a word with them and do something like this.....
Pay the mortgage down to 1k,
Have more than 1k in the bank to offset the interest paid to 0%
Set up your payments to pay the 1k off over the term of the current agreement.
Pay the mortgage down to 1k,
Have more than 1k in the bank to offset the interest paid to 0%
Set up your payments to pay the 1k off over the term of the current agreement.
My first thought was not to tell them about not working and to pay the mortgage on the new house using savings until i get a job, but getting caught wasn't worth it.
When I spoke to the mortgage team I did tell them that both me and the wife would take our business, and our money else where and it fell on deaf ears!
I've never had any problems with them in seven years, but customer loyality counts for nothing these days.
When I spoke to the mortgage team I did tell them that both me and the wife would take our business, and our money else where and it fell on deaf ears!
I've never had any problems with them in seven years, but customer loyality counts for nothing these days.
The front line staff don't have the authority to make deals around you leaving your deposit with them. After all, you could take them away at any point.
Is your mortgage portable, i.e. If you bought at the same time and took the same level of mortgage out again there would be no charge?
If so, there is generally a window of around 3-6 months where you pay the fee at the time of selling. And they refund when you take out the new mortgage. If it's longer than 6 months it's often on a sliding scale. I assume the only reason your not buying a new house is because you were made redundant? If so I would write to FD and explain your situation, in that you will pay the charge now but would be grateful if they could extend the window to allow you to find work etc. They has nothing to lose, unless you have a very low priced deal which hey would rather not renew.
P
Is your mortgage portable, i.e. If you bought at the same time and took the same level of mortgage out again there would be no charge?
If so, there is generally a window of around 3-6 months where you pay the fee at the time of selling. And they refund when you take out the new mortgage. If it's longer than 6 months it's often on a sliding scale. I assume the only reason your not buying a new house is because you were made redundant? If so I would write to FD and explain your situation, in that you will pay the charge now but would be grateful if they could extend the window to allow you to find work etc. They has nothing to lose, unless you have a very low priced deal which hey would rather not renew.
P
We have asked the bank before about porting the mortgage and they are very strict about the deal we have. We must sell and buy on the same day, most lenders will allow you a period of time to find another property but not in this instance.
Would it make any difference in the way they view it, as we now want to borrow less? less profit for them.
Would it make any difference in the way they view it, as we now want to borrow less? less profit for them.
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