I got a fixed 5 year fixed mortgage with northern rock, due to unforeseen circumstances i now have to put the house on the market, im only 5 months into the mortgage term which means a hefty penalty, does anyone know a way out of having to pay it?
2007-11-08 04:38:18 · 9 answers · asked by melnuttytart 1 in Business & Finance ➔ Renting & Real Estate
No, I don't think you can unless it was mis-sold.
Try this forum, they know what they are talking about.
www.moneysavingexpert.com
Good luck.
2007-11-08 04:42:13 · answer #1 · answered by Fourcandles 4 · 0⤊ 1⤋
Unfortunately, the only way out is to refinance the property to a loan program without a penalty. You would still have pay closing costs.
Can you keep the property as a rental with an option to purchase after the prepayment penalty period has passed? That would be something to consider if your unforeseen circumstances could allow that.
2007-11-08 05:15:34 · answer #2 · answered by Anonymous · 0⤊ 0⤋
YOU ARE INDEED BETWEEN A ROCK AND A HARD PLACE.You will most likely have a fairly heavy penalty clause for early settlement,the only way out may be to pay most of the capital off,leaving only a small outstanding sum to pay,but this is usually only workable with a normal 25 year term mortgage,check the small print.Have you tried consulting the mortgage lender for an amicable solution?
2007-11-08 04:45:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
yes! i have three options for you:-
1. If you are taking out a mortgage on a new property, negotiate with your existing lender, they will often waive charges in order to keep your business. Also check with other lenders, in a competitive market, they are often prepared to make one-off discounts - they just dont like to advertise it!
2. Simply add the penalty to the price you are asking for your house.
3. Death!
2007-11-08 05:06:02 · answer #4 · answered by MERECAT 2 · 1⤊ 0⤋
A quick look at Northern Rock's website indicates that, even if you re-mortgage with them, they will charge you any early termination fees, as provided in your original contract.
Doesn't look good for your situation....
2007-11-08 05:18:32 · answer #5 · answered by acermill 7 · 0⤊ 0⤋
If you agreed to the penalty when you took out the loan, then nothing will change now. You were able to receive a better rate because of the prepay penalty. http://www.choicerealestate.net/
2007-11-08 08:05:10 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Call them up, ask them for short sale. They will not let you walk away with any money. Explain your hardship, it may work. Good Luck
2007-11-08 04:48:23 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Typically there isn't but read your small print. It'll be in there if there is a way out.
2007-11-09 08:39:18 · answer #8 · answered by Penfold 6 · 0⤊ 0⤋
There isn't one. You signed a contract with them. You will have to uphold it, unless they allow you to transfer it to another property.
2007-11-08 08:59:31 · answer #9 · answered by Anonymous · 0⤊ 0⤋