Accord redemption penalty

[Koos]

Hi there,

 

We are going to pay Accord an £5900 ERC on Friday. We only have 2 months on the deal left. We have tried everything from porting the mortgage to moving it to another property but all Accord see is an easy £6k.

 

Do you think it could work if offer to pay them all the interest till the deal ends in return for my ERC? The 2months interest will be around £1000 and I think that will be a fair deal? Or could I take them to the small claim court for £5900 minus the interest which will make bring total under £5k?

 

Thanks for your help!

[zootscoot]

Hi Koos,

 

Its worth trying to negotiate with them although be prepared for them not willing to budge.

 

If you do payout and intend to claim it back make sure that it is made clear at the the time of the payment that you are paying under duress and intend to claim the money back through the courts.

 

Best wishes

 

Zoot

[Koos]

Thanks Zoot!

[half ax I]

Koos

 

It is definitely worth trying to negotiate a reduction. There is a view that the ERC is to compensate for any loss they might have for early leavers. Given that an offer of the interest for the 2 remaining months would mitigate any loss they would have in those last 2 months there is possibly a chance they would accept. It might be worth asking your solicitor to negotiate the redemption although in my experience they tend to only be interested in doing the basic stuff a solicitor needs to do when there is a sale. In my daughters case the solicitor didn't find some basic errors in calculations and just took Accord's word for the amount owed.

 

Are you moving house or selling up? I guess in any case Friday is the completion of sale date so not much time to negotiate in. As zoot says if ERC is paid include the duress bit and ask solicitor to include it in the correspondence to Accord.

 

My daughter paid an ERC of a similar amount which when the situation is clearer will be worth getting back. Currently trying to get them to repay charges - http://www.consumeractiongroup.co.uk/forum/mortgage-companies/84157-mortgage-account-charges-long.html

 

 

Good Luck

 

S

[half ax I]

Koos

 

How did you get on?

 

S