Me neither, and between new mortgages and refinances, I have to think I’ve had at least 7-10 separate mortgages over the past 20 years. They all specify “no prepayment fees.”
That is awful. I’m glad to hear it’s not that common. I would want to make sure to sign a contract that did not have payment fees…I don’t really care if he is “expecting” interest payments.
Seriously. I buy a house tomorrow. I pay on it for, say, ten years. My dad passes away. I get a ton of money? I’ll be darned if I can’t just pay it off at that time.
God, house-buying sounds so crazy.
Do you have a cite for the “most non-FHA mortgages include early payoff penalties”? Between purchases and refis I’ve had about 8 different mortgages over the past 15 years, and never had a prepayment or early payoff penalty.
I don’t know about “most” but what I just read earlier suggests that many states have laws making payoff penalties illegal, but federal law that allows Adjustable Rate/Balloon type mortgages trumps state law and makes the penalties legal, but only for those types, and only for non-FHA loans. Since I’m a “fixed rate or bust” type of guy, I didn’t get any penalties on my loans.
Unless you’re fairly wealthy it would be unusual if you didn’t have mostly or all FHA backed mortgages. And no, I don’t have a citation; we refinanced two months ago and it’s what the lenders told us when we expressed concern about early payment clauses in our existing mortgage.
This is all beside the point, though. I was merely using mortgages of an example of other services you can’t necessarily just opt out of whenever you like.
Fuck, I just can’t help myself. Even in the UK I’ll wager you visited a comparison SITE and your attempt to lower your premium is VAIN.
As for the rest of your rant, it just bespeaks a profund ignorance of how insurance works and a perfectly natural anger response to uncertainty. You’ll grow up eventually, and when you do you will either choose to learn why your premium changes, or you will cease to care.
I don’t think the OP is unreasonably pissed off considering her rate was unilaterally jacked up. She didn’t agree to the new terms, so she should be able to opt out without a penalty.
But she did voluntarily move to an area with a higher statistical likelihood of needing to make a claim.
That there is the crux of it–the outright injustice that shopping can effectively happen only at renewal. But that’s more of a legislation thing that The Good And Proper People Of The UK have not seen fit to correct. Maybe things are different under a monarchy though.
If you truly CAN’T afford the new rate, call them and raise your deductibles. That will make it more affordable. Then, drive as little as possible for the next 4 months. And definitely don’t cause an accident!
IIRC, you can’t have a deductible for third party coverage in the UK.
This. ladybird, call your MP and complain about the law.
I’m thinking that maybe Canadian banks are in better shape because we have more restrictive regulations. You guys caused the clusterfuck and our banks are still OK.
Sometimes government regulations are a good thing; this isn’t awful at all, it’s to provide protection to lending establishments.
Not just houses, but that can be a clause for car loans too.
I remembered to inquire about prepayment penalties on my mortgage because I’d first heard about them on my car loan. Because the car loan specifically pointed out that there was no penalty.