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mortgage redemption penalty


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hi everyone.


im just about to sell my house but unfortunately i am going to be about 6 weeks from the redemption penalty end date.


has anyone got any ideas on if i can tackle birmingham midshires regarding the £7000 they want to charge me for 6wks.


my new mortgage is going to be with halifax which i believe is a subsidiary.


I really cant afford to pay the £7000 but i can't afford to lose house sale either and everyone in chain is really pushing .


any ideas would be gratefully received.


also if i have to wait until after mortgage has ended to try to claim back charges where the hell do i start, it all looks really scary and way above my head.:grin: :???:

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I would try and string out the purchase for £7K. Is it portable can you not take it with you to your next mortgage if you have one.


If you have not done so, try to talk with BM and see what they can do.


I am no specialist in these, but from reading claims on this site you are unlikely to be successful claiming the redemption sum back - have a look here.

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they mortgage is portable but it says only if our circumstances are the same and the mortgage we take out must be same amount or higher that the original mortgage.


i have read on these forums of people who have got their erc back but i really dont want to have to go down that route as i can;t afford legal fees

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I'm no expert, but I don't believe these were the charegs referred to. This type of early repayment charge forms part of your contract and is generally payable in return for a reduced rate. I'm not sure that you would have grounds to reclaim the £7k. Your best bet really would be to string the sale out for a further six weeks

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I tackled Birmingham Midshires about a year ago for a Redemption Penalty i had paid them on settling early.


My advice is, do not try and put a claim in, i only got half of mine back. This was paid back as i believe that it was new territory for the banks and financial institutions to defend. They paid up because the costs involved in defending in court, would be far greater than simply paying out.


I would get hold of Birmingham Midshires, and try and negotiate the ERC repayment, as you are almost finished. Birmingham Midshires is part of the RBS group, along side the Halifax, so they may play ball if you mention that your new mortgage is with their group anyway.


Please be aware of acting on advice given by PM .Anyone can make mistakes and if advice is given on the main forum people can see it to correct it ,if given privately then no one can see it to correct it. Please also be aware of giving your personal details to strangers

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