Selling House - BOI Fixed Term Mortgage..Funding Fees

houseseller

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I'm selling my house and BOI have provided a statement with the current balance to the solicitor. Under the Insurance Heading; Funding Fees. They are charging me a large sum as I have a fixed term mortgage and I'm leaving it early. This is the note; If this mortgage Account is currently on a Fixed Rate and if there is a funding fee applicable due to early redemption, you may be entitled to a funding fee refund should you carry this existing rate to a new mortgage for the same amount or more and complete the new mortgage within a 6month period. For further details, contact mortgage advisor.
Please help if you've advice on who best I speak to and how I get this reduced. When I rang the head office they are telling me it's an EU directive..
It's shocking as I'm paying over the odds and now they are literally taking 6months mortgage repayment.
Thank you
 
There are 2 separate things here:
1. They are charging you a break fee. You don't say how much, but the calculations are governed by the mortgage credit directive. It's separate from the 6 months reference.
2. They are offering to refund the break fee if you draw down another mortgage within 6 months, and carry over the fixed rate - this is for people moving house. It's an interesting feature I wasn't aware of.

This explains how break fees are calculated:
 
How much is the break fee?

And do you accept that, as you are breaking a fixed term contract, that, under the terms of that Contract, that BOI are entitled to charge you a breakage fee?

Have you checked the terms of your original loan offer? Is the break fee calculated in accordance with that?

And they seem to be saying that if you take out a new mortgage with them that they may refund some of the break fee. Is that not a good thing?

Can you explain why you think you should get a reduction in the break fee?

And can see that I'm crossing over with RedOnion - but pretty much the same idea.

mf
 
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