Mortgage Redemption: paying off your mortgage and it's potential problems such as mortgage redemption fees, plus available help!
Mortgage Redemption is the action of paying-off your mortgage borrowings.
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This page takes a closer look at Mortgage Redemption, the potential problems that may arise such as Early Repayment Charges, and Mortgage Redemption Fees. We also take a look at how we can help if you'd like to switch your mortgage to take advantage of a better rate or perhaps to refinance your existing borrowings into one new loan.
Table of Contents:
What is Mortgage Redemption?
Mortgage Redemption is the action of paying-off your mortgage borrowings. This generally will be for one of two reasons:
- You come to the end of your mortgage term, or
- You want to switch lender, to take advantage of a better rate, or maybe to refinance your borrowings into one new loan.
Are there any possible problems when it comes to mortgage redemption?
The answer is potentially, yes, there could be!
It depends on the terms of the mortgage you are looking to redeem.
If you have some form of tie-in (or lock-in) clause, perhaps because you originally had a fixed rate mortgage or discount rate mortgage, then you will usually have to repay some form of penalty to the lender, known as an Early Repayment Charge (ERC).
What should I take into account if I want to redeem my mortgage?
Whether it is prudent to proceed if you have Early Repayment Charges (ERC's) will depend upon several factors, which will include:
- the amount of ERC penalty
- how much longer the tie-in period has to run
- if the benefits of your new facility will out-weight the penalty interest
- if you have no other option
Mortgage Redemption Fees
When you pay-off your mortgage altogether, some lenders will charge a mortgage redemption fee, which is also known as a "deeds fee", "exit fee", "sealing fee" or a "discharge fee". This to all intents and purposes is an administrative charge at the time you repay your mortgage, a fee that has come in for a degree of criticism by various watchdogs.
It seems that as mortgage lenders are continually reducing their margins on interest rates, some are seeking other areas in which they can recoup some form of additional income, especially if they propose taking their business elsewhere!
I would like to switch my mortgage, could Shire Direct help me?
Yes, no problem!
Remember, our qualified mortgage advisors are available to discuss the options that may be available to you. We'll carefully assess your circumstances, needs, requirements and aspirations and come up with the most appropriate solution for you.
We are certain you will find our service to be friendly, professional and helpful, why not take a look at what some of our previous customers have had to say about us on our customer testimonials page.
So, please don't hesitate to Contact Us if you would like to discuss your requirements, naturally without obligation.
Our mortgage advisors are available up until 10pm daily on 08000 282 281, the call is free, and we'll be delighted to provide you with a rapid in-principle decision - whatever your circumstances. Alternatively you may prefer to enquire online at any time, it's both quick and easy to do, and we'd love to hear from you.
Finally then, we hope we've been able to explain Mortgage Redemption, and the potential issues that may occur such as Mortgage Redemption Fees and Early Repayment Charges. Don't forget there is a wealth of information throughout our website, and that we're only ever a free telephone call or a couple of mouse clicks away, and will be delighted to help in any way possible.
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
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