My mortgage product expires at the end of the month, so called my current provider (Skipton) to see what deals are available.
After being given the rates, I asked how much the repayments would be if I reduced the term. I was told the amounts, but also advised that if I do reduce my term, there would be a charge of £50.
I was a bit shocked, so I checked that the advisor understood that I meant changing term when I changed to a new product and they confirmed that it was correct.
Is this standard across the industry? Can anyone explain the justification for this?? I could understand that they may charge if you change midway through a product (just about) but not when you are in effect arranging a new mortgage.
The advisor also tried to steer me away from reducing the term, and instead go down the regular overpayment route as if circumstances changed I was not overcommitted.
Opinions anyone?
After being given the rates, I asked how much the repayments would be if I reduced the term. I was told the amounts, but also advised that if I do reduce my term, there would be a charge of £50.
I was a bit shocked, so I checked that the advisor understood that I meant changing term when I changed to a new product and they confirmed that it was correct.
Is this standard across the industry? Can anyone explain the justification for this?? I could understand that they may charge if you change midway through a product (just about) but not when you are in effect arranging a new mortgage.
The advisor also tried to steer me away from reducing the term, and instead go down the regular overpayment route as if circumstances changed I was not overcommitted.
Opinions anyone?