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If mortgage t&c's state (For all Mortgages with this lender) under a heading of Capital Repayment:
"You may repay the whole, or any part, of the debt at any time provided you meet any Special Conditions in the offer document regarding early payment, such as paying any early repayment charges, and subject to the following conditions relating to part payments."
Next para. states " The minimum debt remaining after any part payment must be at least £2500".
Question.
If the house is being sold then just how can a balance be left if the deeds are to be released for transfer, particularly since the t&c's go on to state "The mortgage deed secures the debt owing...." and that "We shall not be obliged to release any property as security except where the debt or other money owing has been paid in FULL, or where we have agreed to take alternative security".
My friends had to sell their house owing to medical problems and were told that they couldn't leave a balance as mentioned above (since they were moving into rented accommodation)- they are now seeking transcript of the telecons. Had they been permitted to leave the residual amount they would not have paid the ERC.
Am I reading a standard term wrongly or is there a 'Catch 22' in place?
And another thing - if the lender can allow total repayment (except for the £2500 residual balance) how on earth can they argue that the retention of £11k (3 months interest) is remotely justifiable to 'meet a contingency'!!
Zoot - thoughts please.
If mortgage t&c's state (For all Mortgages with this lender) under a heading of Capital Repayment:
"You may repay the whole, or any part, of the debt at any time provided you meet any Special Conditions in the offer document regarding early payment, such as paying any early repayment charges, and subject to the following conditions relating to part payments."
Next para. states " The minimum debt remaining after any part payment must be at least £2500".
ace
This is just your option to exercise a right under the contract to reduce your mortgage - most if not all mortgages have this written in to them, only on a flexible or no ERC mortgage will you be able to pay with no ERC being paid.
Question.
If the house is being sold then just how can a balance be left if the deeds are to be released for transfer, particularly since the t&c's go on to state "The mortgage deed secures the debt owing...." and that "We shall not be obliged to release any property as security except where the debt or other money owing has been paid in FULL, or where we have agreed to take alternative security".
A balance cannot be left if the deeds are being transferred, the buyer would not have clear title - this balance being left figure only applies to part payments to reduce your mortgage.
My friends had to sell their house owing to medical problems and were told that they couldn't leave a balance as mentioned above (since they were moving into rented accommodation)- they are now seeking transcript of the telecons. Had they been permitted to leave the residual amount they would not have paid the ERC.
Am I reading a standard term wrongly or is there a 'Catch 22' in pl
No they still would have paid the ERC, on the balance they had paid over £2500, the remaining amount only applies if you wish to remain in the property after making a partial payment. You cannot part pay in full redemption. I repeat the clause here with the relevant bits highlighted.
"You may repay the whole, or any part, of the debt at any time provided you meet any Special Conditions in the offer document regarding early payment, such aspaying any early repayment charges, and subject to the following conditions relating to part payments."
Reason he's now trying to get a transcript of the conversation with the lender is that he was most definitely advised that 'had he left the minimum balance of £2500 then he would not have been subject to ERC'!
But, because he was selling the house he couldn't have obtained cleared deeds.
Giz, what you say makes sense (unfortunately) but, if he can substantiate the advice given then there might be a glimmer.
My mortgage is interest only and ends Feb 2009. I paid off a lump sum in 2006. When I recieved my yearly statement with transactions showing, they had charged me £3800 for paying off this lump sum, can they do this?
My mortgage is interest only and ends Feb 2009. I paid off a lump sum in 2006. When I recieved my yearly statement with transactions showing, they had charged me £3800 for paying off this lump sum, can they do this?
Terms & Conditions
t&c's state (For all Mortgages with this lender) under a heading of Capital Repayment:
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Originally Posted by splashin
