Northern Rock mortgage borrowers on the toxic loan side of the bank will be slammed with early redemption charges if they attempt to remortgage before their deal ends.
The fees will hit roughly 400,000 borrowers who took out five-year mortgages, the Daily Mail reports. Borrowers face fees of 3% of their home loan - despite contracts saying the mortgage would be portable to a new property. Normally, when a borrower moves home, they stay on their existing mortgage deal and borrow some extra money from their lender if the new property is more expensive. But Northern Rock Asset Management - the ‘bad' part of the bank - is unable to lend any money. This forces most homeowners looking to buy a more expensive property to redeem their mortgage early. ...
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