Angus raised a complaint about an early repayment charge his lender applied when he paid off his mortgage.

What happened

Angus wanted to port his capped rate mortgage to a new property. He also needed to borrow more money. His lender said it couldn’t see that Angus would be able to afford the higher monthly payments when he retired. Angus was able to find a mortgage elsewhere for the whole amount, so he paid off his existing balance, incurring an early repayment charge. He didn't think this was fair in the circumstances.

Our decision 

We thought the lender had made a reasonable assessment of Angus’s request for further borrowing. It had explained the situation - and the charge - to Angus before he committed to buying the new property. Armed with this information, Angus had made the choice to remortgage elsewhere, knowing the charge would be applied. 

We explained to Angus why we didn’t think the lender was wrong to apply the charge.