Mortgage Redemption Nightmare !!!!
May 21st 2003, 5:33 am
#1
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Thread Starter
Joined: Apr 2003
Location: Rockhampton
Posts: 106
Mortgage Redemption Nightmare !!!!
Hi All,
Has anybody else had any experience of early repayment penalties with regards to their mortgages, we have a 3 year discounted mortgage with RBS. We have sold our house, and by the time the money comes through, we will have been paying our mortgage for exactly 3 years. Unfortunately, because of the discounted mortgage we are tied in for another 3 yrs (2006), the early repaymnt charge is over £2,000.
The fact is becuase early payments, i.e first couple of years are loaded with interest, and the early payment penalties our final payment is only about £1000, less thann we borrowed, so 3 yrs payments x£250.00 per month=£9000. Money makes money eh! Sticks in the throat a tad, maybe at the time we were wrongly advised at the time, we had no idea we would be moving to OZ! Obviously we would not have tied ourselves in for so long, a friend sorted the mortgage, thanks pal!
I have been told to write a letter to RBS, by a friend who works for them, just in case they change their policy, may have some comebacks!
Has anybody else had any experiences, tales of woe so to speak! Just to make me feel better really! Only kidding!
I know the way the housing market has moved in the last 3 years, and I am not complaining about the profit we have made, It's just the banks that piss me off, I mean what if the market had moved the other way! We would still have to pay the early repayment charges, BAST****!!!!
Thanks
Gary
Has anybody else had any experience of early repayment penalties with regards to their mortgages, we have a 3 year discounted mortgage with RBS. We have sold our house, and by the time the money comes through, we will have been paying our mortgage for exactly 3 years. Unfortunately, because of the discounted mortgage we are tied in for another 3 yrs (2006), the early repaymnt charge is over £2,000.
The fact is becuase early payments, i.e first couple of years are loaded with interest, and the early payment penalties our final payment is only about £1000, less thann we borrowed, so 3 yrs payments x£250.00 per month=£9000. Money makes money eh! Sticks in the throat a tad, maybe at the time we were wrongly advised at the time, we had no idea we would be moving to OZ! Obviously we would not have tied ourselves in for so long, a friend sorted the mortgage, thanks pal!
I have been told to write a letter to RBS, by a friend who works for them, just in case they change their policy, may have some comebacks!
Has anybody else had any experiences, tales of woe so to speak! Just to make me feel better really! Only kidding!
I know the way the housing market has moved in the last 3 years, and I am not complaining about the profit we have made, It's just the banks that piss me off, I mean what if the market had moved the other way! We would still have to pay the early repayment charges, BAST****!!!!
Thanks
Gary
May 21st 2003, 5:36 am
#2
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Joined: Jan 2003
Location: Brisbane
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After you have experienced the delights of Aussie banking you will consider the UK banks saints by comparison
May 21st 2003, 6:57 am
#3
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Location: Tahmoor NSW - Southern Highlands
Posts: 1,385
Hi visited our local Halifax last week with the last few pennies (sic) in my sweaty hand and paid off the mortgage. Superb feeling. No penalties. Los of smiles and wishes of good luck. What was even better news was the amount we had to pay. We did not reduce our monthly payments each time the rate went down and had an arrangement that the overpayments were IMMEDIATELY taken off - not 'at the end of the year' This helped immensely.
Good luck
Good luck
May 21st 2003, 7:27 am
#4
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Our 5year fixed rate is more than the current rate on offer, and we still have to pay £2500 in early redemption penalty.
May 21st 2003, 8:01 am
#5
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Joined: Mar 2003
Location: Ping Ponged York via Melbourne and now pinged to Ferny Hills, Brisbane
Posts: 1,177
Mines not quite as bad but still loosing £700 for early redemption.
Jo
Jo
May 21st 2003, 8:11 am
#6
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Joined: Mar 2002
Posts: 498
Surely you all knew about these early redemption penalties at the time you took out the mortgage. You must have agreed to them with your signature. You can't take out a fixed-term mortgage and then complain because you broke the conditions of the mortgage.
May 21st 2003, 10:35 am
#7
I liek beer
Joined: Jul 2002
Location: The Hills, Melbourne
Posts: 203
We also had a mortgage redemption of £5.000. Luckily we are aware of this. The penalty expires in September hence everything is based on that. The tax man, endowments, mortgage, pensions etc......
Makes you wonder why we don't just store all our money under the mattress.
All the best
Makes you wonder why we don't just store all our money under the mattress.
All the best
May 21st 2003, 11:01 am
#8
?????????
Joined: May 2003
Location: Gold Coast
Posts: 1,974
Keep your house and rent it out, and get a mortgage in Oz.
You should make a small profit each month on the rent from the UK house, and if in three years time you wish to sell it should have gone up in value too.
You should make a small profit each month on the rent from the UK house, and if in three years time you wish to sell it should have gone up in value too.
May 21st 2003, 12:05 pm
#9
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Originally posted by etlniwd
Surely you all knew about these early redemption penalties at the time you took out the mortgage. You must have agreed to them with your signature. You can't take out a fixed-term mortgage and then complain because you broke the conditions of the mortgage.
Surely you all knew about these early redemption penalties at the time you took out the mortgage. You must have agreed to them with your signature. You can't take out a fixed-term mortgage and then complain because you broke the conditions of the mortgage.
I wasn't intending to emigrate when I signed it.
May 21st 2003, 12:32 pm
#10
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Keep your house and rent it out, and get a mortgage in Oz.
May 21st 2003, 12:34 pm
#11
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Joined: Mar 2003
Posts: 4,432
Originally posted by paulf
Keep your house and rent it out, and get a mortgage in Oz.
You should make a small profit each month on the rent from the UK house, and if in three years time you wish to sell it should have gone up in value too.
Keep your house and rent it out, and get a mortgage in Oz.
You should make a small profit each month on the rent from the UK house, and if in three years time you wish to sell it should have gone up in value too.
May 21st 2003, 1:15 pm
#12
Forum Regular
Joined: Mar 2003
Location: North Sydney
Posts: 241
Re: Mortgage Redemption Nightmare !!!!
Hi,
We have exactly the same problem with an RBS discounted mortgage. However, we particularly request a mortgage without a redemption penalty longer than the discount and was told by our so called 'financial adviser' that there wasn't one. We don't remember signing anything with this redemption on it so are going to request copies of paperwork as the copy our advisor gave us doesn't have our signatures on it!!
Still, probably will have to swallow it and pay up. But we will try our best to get to the bottom of it first.
Good luck
TOB
We have exactly the same problem with an RBS discounted mortgage. However, we particularly request a mortgage without a redemption penalty longer than the discount and was told by our so called 'financial adviser' that there wasn't one. We don't remember signing anything with this redemption on it so are going to request copies of paperwork as the copy our advisor gave us doesn't have our signatures on it!!
Still, probably will have to swallow it and pay up. But we will try our best to get to the bottom of it first.
Good luck
TOB
Originally posted by garywarby
Hi All,
Has anybody else had any experience of early repayment penalties with regards to their mortgages, we have a 3 year discounted mortgage with RBS. We have sold our house, and by the time the money comes through, we will have been paying our mortgage for exactly 3 years. Unfortunately, because of the discounted mortgage we are tied in for another 3 yrs (2006), the early repaymnt charge is over £2,000.
The fact is becuase early payments, i.e first couple of years are loaded with interest, and the early payment penalties our final payment is only about £1000, less thann we borrowed, so 3 yrs payments x£250.00 per month=£9000. Money makes money eh! Sticks in the throat a tad, maybe at the time we were wrongly advised at the time, we had no idea we would be moving to OZ! Obviously we would not have tied ourselves in for so long, a friend sorted the mortgage, thanks pal!
I have been told to write a letter to RBS, by a friend who works for them, just in case they change their policy, may have some comebacks!
Has anybody else had any experiences, tales of woe so to speak! Just to make me feel better really! Only kidding!
I know the way the housing market has moved in the last 3 years, and I am not complaining about the profit we have made, It's just the banks that piss me off, I mean what if the market had moved the other way! We would still have to pay the early repayment charges, BAST****!!!!
Thanks
Gary
Hi All,
Has anybody else had any experience of early repayment penalties with regards to their mortgages, we have a 3 year discounted mortgage with RBS. We have sold our house, and by the time the money comes through, we will have been paying our mortgage for exactly 3 years. Unfortunately, because of the discounted mortgage we are tied in for another 3 yrs (2006), the early repaymnt charge is over £2,000.
The fact is becuase early payments, i.e first couple of years are loaded with interest, and the early payment penalties our final payment is only about £1000, less thann we borrowed, so 3 yrs payments x£250.00 per month=£9000. Money makes money eh! Sticks in the throat a tad, maybe at the time we were wrongly advised at the time, we had no idea we would be moving to OZ! Obviously we would not have tied ourselves in for so long, a friend sorted the mortgage, thanks pal!
I have been told to write a letter to RBS, by a friend who works for them, just in case they change their policy, may have some comebacks!
Has anybody else had any experiences, tales of woe so to speak! Just to make me feel better really! Only kidding!
I know the way the housing market has moved in the last 3 years, and I am not complaining about the profit we have made, It's just the banks that piss me off, I mean what if the market had moved the other way! We would still have to pay the early repayment charges, BAST****!!!!
Thanks
Gary
May 21st 2003, 3:14 pm
#13
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Joined: Dec 2002
Location: United Kingdom.
Posts: 503
Originally posted by Kiwipaul
After you have experienced the delights of Aussie banking you will consider the UK banks saints by comparison
After you have experienced the delights of Aussie banking you will consider the UK banks saints by comparison
May 21st 2003, 3:26 pm
#14
BE Enthusiast
Joined: Dec 2002
Location: United Kingdom.
Posts: 503
Re: Mortgage Redemption Nightmare !!!!
Originally posted by garywarby
Hi All,
Has anybody else had any experience of early repayment penalties with regards to their mortgages, we have a 3 year discounted mortgage with RBS. We have sold our house, and by the time the money comes through, we will have been paying our mortgage for exactly 3 years. Unfortunately, because of the discounted mortgage we are tied in for another 3 yrs (2006), the early repaymnt charge is over £2,000.
The fact is becuase early payments, i.e first couple of years are loaded with interest, and the early payment penalties our final payment is only about £1000, less thann we borrowed, so 3 yrs payments x£250.00 per month=£9000. Money makes money eh! Sticks in the throat a tad, maybe at the time we were wrongly advised at the time, we had no idea we would be moving to OZ! Obviously we would not have tied ourselves in for so long, a friend sorted the mortgage, thanks pal!
I have been told to write a letter to RBS, by a friend who works for them, just in case they change their policy, may have some comebacks!
Has anybody else had any experiences, tales of woe so to speak! Just to make me feel better really! Only kidding!
I know the way the housing market has moved in the last 3 years, and I am not complaining about the profit we have made, It's just the banks that piss me off, I mean what if the market had moved the other way! We would still have to pay the early repayment charges, BAST****!!!!
Thanks
Gary
Hi All,
Has anybody else had any experience of early repayment penalties with regards to their mortgages, we have a 3 year discounted mortgage with RBS. We have sold our house, and by the time the money comes through, we will have been paying our mortgage for exactly 3 years. Unfortunately, because of the discounted mortgage we are tied in for another 3 yrs (2006), the early repaymnt charge is over £2,000.
The fact is becuase early payments, i.e first couple of years are loaded with interest, and the early payment penalties our final payment is only about £1000, less thann we borrowed, so 3 yrs payments x£250.00 per month=£9000. Money makes money eh! Sticks in the throat a tad, maybe at the time we were wrongly advised at the time, we had no idea we would be moving to OZ! Obviously we would not have tied ourselves in for so long, a friend sorted the mortgage, thanks pal!
I have been told to write a letter to RBS, by a friend who works for them, just in case they change their policy, may have some comebacks!
Has anybody else had any experiences, tales of woe so to speak! Just to make me feel better really! Only kidding!
I know the way the housing market has moved in the last 3 years, and I am not complaining about the profit we have made, It's just the banks that piss me off, I mean what if the market had moved the other way! We would still have to pay the early repayment charges, BAST****!!!!
Thanks
Gary
We had ours with Barclays on a base tracker repayment only, cost (deeds) 40 quid only, job done
May 21st 2003, 4:11 pm
#15
Guest
Posts: n/a
Ouch,
Our redemption ends 2004 (hopefully will have the OK for visa by then) but we were aware of that when we took the mortgage out!
Hope the market doesn't crash!! I'm relying on some good profit. When I got a valuation ready for the DIMIA the three estate agents were of the opinion that the market may drop in London ref mental prices but elsewhere should just flatten out (bloody hope so!!)
Anyone else heard this?
Earlswood
Our redemption ends 2004 (hopefully will have the OK for visa by then) but we were aware of that when we took the mortgage out!
Hope the market doesn't crash!! I'm relying on some good profit. When I got a valuation ready for the DIMIA the three estate agents were of the opinion that the market may drop in London ref mental prices but elsewhere should just flatten out (bloody hope so!!)
Anyone else heard this?
Earlswood