Special Conditions of Mortgage

[PrivateI]

Has anyone come across the following special condition in a mortgage?

"If the loan is redeemed by the Borrower within 36 months of the date the loan is drawn down, this fact may be disclosed to the introducing mortgage intermediary"

If so what are the implications of this other than I'll tell your mammy?

 

[Towger]

If your mortage is through a broker, the bank will look for their comission back if you pay it off too soon. The broker will not be happy and may 'try' to look for it off you.

 

[ClubMan]

if you pay it off too soon.

Including if you remortgage/switch to another lender.

If so what are the implications of this other than I'll tell your mammy?

You might need to check the terms & conditions of the mortgage intermediary's agreement with the client.

 

[LDFerguson]

This sounds like an ICS loan offer. Yes if you redeem your loan within three years the broker's commission will be clawed back, so it gives ICS the right to tell the broker what you're doing.