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Negotiating Early End To Mortgage Redemption

Hi Guys,

I took out a 2 Year Discount Mortgage with The Woolwich 4 years ago. It has an early redemption fee period lasting 5 years from inception (6 months interest at prevailing rate on anything paid off).

I want to change it to their Openplan Mortgage as I have some savings & really fancy the flexibility (I've no desire to leave them now or in the medium term - they've been pretty good, as have been the rates). Is it reasonable for me to go in and ask them if they'll change it for me earlier than the 5 year redemption period? As I say, I've no desire to leave them but I guess they might think I wanna just change then bugger off without paying the redemption fees, which I don't.

My point of view is basically, "I want to stay & will if you give a bit, otherwise I may aswell bugger off to a competitor in a year".

Your comments are much appreciated.

keef.

=============================="If I had all the money I'd spent on drink, I'd spend it on drink" - Sir Henry Rawlinson ==============================

Reply to
keef
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IME the time it will take them to sort the details out will be about a year anyway. bUt from what I read about similar experiences, they'll tell you to bugger off but all you can do is ask.

Reply to
Tumbleweed

From my experience, they don't care about keeping their existing customers, so you may as well move to a competitor. Feel free to try it with them though!

Dave

Reply to
David Lowndes

Is it

It's not unreasonable at all. You can only ask. But whether they will I can't say.

I can say that the Bank of Ireland agreed to change mine within the penalty period, although it was only a couple of months, not a year like yours.

Rob Graham

Reply to
Rob Graham

What's the rush? Would you really save *that* much by merging your savings with your loan *now* as against a year hence?

There again, you could threaten to sue for unfair contract term if the redemption fee fails to taper down. But frankly it seems a lot of hassle to no substantial end.

Reply to
Ronald Raygun

This was my experience -- lender's loss, but on the other hand, they are playing a win majority/lose minority game.

Squawk!

Reply to
tasty chicken

Thanks all for replies.

Sue? Bit harsh! :o) But yeah, I would save a lot of money - the mortgage is for 60k & I have savings of 38k and rising. It's a long story but basically a little after starting my mortgage I got a new job that doubled my salary so I had/have loads of "spare cash" right now ... BUT if I pay off half my mortgage I have to cough up 6 months interest to 'em which I just don't wanna do.

There's no need for anyone to reply with the pro's/con's of paying off 30k now cos it'll save me 6 months interest over 12 months - I'd prefer the option of having the cash available for other things - that's why i want an OpenPlan Mortgage :o)

keef

Reply to
keef

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