If you want the full redress in cash, instead of a mortgage write-down...

[Brendan Burgess]

Some people have said that they would like the full redress paid in cash.

This will not happen. The direction is very clear, write down the current balance by 12% of the amount owing when the fixed rate ended.

However, if you have cleared the mortgage, they will have to redeem it in cash.

So you could try switching lender before you move.

Of course, you could also get the write down and then switch lender and borrow a higher amount, but they might not give you a higher amount unless you have a good reason to borrow it such as home renovations.

Brendan

 

[Shay75]

We switched mortgage providers in November.

We then had to take out a substantial loan to renovate. I hope the payment can be made off the credit union loan and the remainder off the mortgage.

 

[Brendan Burgess]

Yes, you will get the 12% in cash. and you will get the interest on that 12% which should be around another 4%.

And you can do what you like with it at that stage.

Brendan