Barclays changed its terms and conditions, and as a result, I have to pay a £7,000 redemption penalty
I took out a portable fixed-rate mortgage with Barclays in 2007 for my house in Devon. A year later, my employer closed and I had to move to get a new job. I couldn’t sell the Devon house so rented it out and bought another in Cambridge. I can now sell the Devon house and want to switch the mortgage to my new home but Barclays says I can’t because, since taking out the mortgage, it has stopped letting borrowers transfer mortgages to properties they already own. Now I have to pay a £7,000 redemption penalty. RW, Cambridge
Barclays changed the terms of its portable mortgages because some people were switching cheap mortgages to buy-to-let properties. This was not your situation of course and Barclays now acknowledges that. It still says borrowers can no longer switch mortgages to properties they already own, but it will make an exception in your case which means you will avoid the penalty.
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