stuartmitchell
Member
Registered: 24th Apr 04
Location: Kirkliston, Edinburgh
User status: Offline
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Hi Team,
Wonder if anyone can help! The wife and I have bought a new build and move in on the 4th April. Importantly we also move out of our own house on the 4th April so that the move is seamless.
Now, our current mortage which we have ported across to the new property still has 3 years left to run (we took out a 5 year fixed deal last time round - silly move in hindsight)
Now Nationwide (our lender) advise that we do not have to pay the redemption figure as we move out of own house and into the new house on the same day.
However the lawyers are stating that due to "logistical" reasons we may well have to pay the redemption fee? (£5500 - :S ) I assume this is to do with coordinating payments and the time it takes to transfer funds? 
At a bit of a loss as surely if the lawyers cant move quick enough to transfer the funds for our new house they will not let us in 
We get the redemption fee back in about 3 weeks should we have to pay it but I would prefer not too. Would like a new TV and sofa
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Colin
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Registered: 4th Apr 02
User status: Offline
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Can't see why that would be the case. Usually there happy to port the product if there's none or minimal gap between properties. Unfortunately 6 months isn't deemed a minimal gap and I had to pay the 3% penalty fee on mine when it sold.
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John
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Registered: 30th Jun 03
User status: Offline
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Funds are normally transferred to the solicitors holding account the day before which could be where this is coming from.
But in this case, it'll all be on one day because the funds are coming from sale of one house to buy the next house.
I'd go with what the mortgage company tell you here right enough, solicitors don't necessarily have a clue.
[Edited on 04-03-2014 by John]
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stuartmitchell
Member
Registered: 24th Apr 04
Location: Kirkliston, Edinburgh
User status: Offline
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quote:
Originally posted by Colin
Can't see why that would be the case. Usually there happy to port the product if there's none or minimal gap between properties. Unfortunately 6 months isn't deemed a minimal gap and I had to pay the 3% penalty fee on mine when it sold.
Sore one mate!  if we do have to pay it we get it back but I dont trust them
John, thanks for the reply mate. Your right, with the funds all being transferred the same day. It's also the case that the lady that is moving into our house is moving out of her own house on the same day too and so the chain continues!!
Mortage broker says Nationwide will not charge us the fee either but we'll see 
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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Get it in writing from your mortgage provider and all will be fine.
Solicitors are useless and lazy.
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