Penalty for breaking fixed term due to house sale.

N

Neil_Ireland

Registered User
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189
Hi all,

I've searched the forum but didn't find much on the subject.

I'd like to know if there are penalties (if so roughly how much)for exiting a fixed term mortgage when selling the house? I would be clearing the mortgage debt completely.

Thanks :)
 
1. Check your original letter of loan offer which will show how a fixed term mortgage break penalty is calculated.

2. Ask your solicitor to request "redemption figures" from your lender. or ask them yourself?

mf
 
Unfortunately I don't have my original loan offer to hand so can't check that.

I called my lender yesterday about redemption figures but they can't give that information out over the phone. I've posted a letter this morning requesting the same but I'd like to have an idea of what to expect in advance.
 
There is almost always a penalty for breaking a fixed term mortgage. Exception would be where the financial institution are willing to waive the penalty due to issues like repayment risk being in question. While the client may break the fixed term the Bank is still liable for the associated costs it has incurred in entering into the contract. This is real cost to the Bank and if not recouped from the customer would need to be absorbed by the Bank!
 
44brendan said:
There is almost always a penalty for breaking a fixed term mortgage. Exception would be where the financial institution are willing to waive the penalty due to issues like repayment risk being in question. While the client may break the fixed term the Bank is still liable for the associated costs it has incurred in entering into the contract. This is real cost to the Bank and if not recouped from the customer would need to be absorbed by the Bank!
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I thought there may be an exception if a person was clearing their mortgage rather than moving to a vairable rate.
 
No standard exceptions due to the reasons outlined above. Your best option is to contact your loan provider directly and request the information.
 
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