early redemption charges??

[sinon]

Hi, I have read various threads questioning the legalities of Mortgage Early Redemption Charges, however cannot find any definite information.

 

My questions are:

 

Can these be challenged in a similar way to other account charges?

 

I am currently 4 years into a 5 year fixed term contract with Lloyds TSB. I am paying a large amount above their present variable rate. The reason I havent changed is the large early redemption payment. Am I able to challenge this in a similar way to other charges? Of course I have never incurred the Early Redemption Charge, my aim would be to have the charge lifted, allowing me free to change rates, or repayment of monies representing the difference in interest rates which I have been forced to maintain as I can't afford to get out.

 

Bit difficult to put into writing, but I hope you get the gist. I would be grateful if you would share any thoughts or experiences.

 

Regards, Simon.

[lickthewallfatboy]

this is from another post-

 

an extract from the Office Of Fair Trading website:

 

A term in a mortgage agreement which requires the borrower to pay more for breaching the contract terms than actual costs and losses caused to the lender by the breach (or a genuine pre-estimate of that) is likely to be regarded as an unfair penalty and to be unenforceable both at common law and (in a consumer mortgage) under the Unfair Terms in Consumer Contracts Regulations.

 

A redemption charge may be regarded as a penalty even if it is expressed as the price for exercising a right rather than a consequence of breaking the agreement

 

This seems to be the basis for a good argument for getting them back.I'm about to LBA the Birmingham midshires for almost £7K

[sinon]

Thanks for your quick response.

 

Also, please accept my apologies for unintentionally posting on the wrong forum.

I don't wish to add to the huge workload you folk already do.

 

Simon.

[sinon]

Good luck with your future endeavours.

 

Do you think I can get out of this money trap, or even claim back the extra interest I have paid, or is this not an option?

 

Simon