[Andy T]

Does anyone have experience of avoiding a UK mortgage redemption penalty by taking out a mortgage in NZ with an NZ company associated with the original UK mortgage provider? :?

Or for that matter if anyone has any advice as to how to avoid a hefty mortgage redemption penalty I'd be very interested to hear about it! :nice1

[Moorf]

We tried but had to cough up our £12.5k in the end - I guess you could rent out the property until such time it finishes?

There was a large-ish thread on this a while back - you can see it here:

http://www.emigratenz.org/forums/viewtopic.php?t=1288&highlight=morgage+redemption+ penalty

[baboonworld]

Dont know if this might help...


... we had a fixed rate with the Halifax and bought a new house in Aug 04, whilst still within our redemption period. However as we were taking out another product with them, and doubling the amount we borrowed, we changed the mortgage to a tracker with no redemption.

We then (now looking back) foolishing changed this to a better rate with nationwide in Jan (fixed 2 years) - but paid no redemption charge to Halifax .. but now are in the same situation as most of you - HOWEVER!!!.....

If you have a fixed rate mortgage, and you have enough equity to borrow double what you are already borrowing you should be able to change the product you are on.

eg, Assuming your house is valued at £250K and you owe £60K. Ask if you can borrow against your equity and take a new product with a total loan of £120K. (Dont mention u are looking to leave UK!!). Then choose a product with no redemption fee. (You dont even need to do anything with the extra £60K except put it in a savings account and the interest you get will cover the interest you pay). Speak to your financial advisor.