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Ask James Mather Your Own Question
James Mather
James Mather,
Category: Law
Satisfied Customers: 22629
Experience:  Senior Partner at Berkson Wallace
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We have a commercial mortgage outstanding of £255656.00 Repayable

Customer Question

We have a commercial mortgage outstanding of £255656.00 Repayable in next 12 years Would like to change to better interest rate (currently paying 11%) Have been quoted £116168.00 to break the contract which seems extortionate Are there laws against banks
charging like this or would it amount to an unfair term
Submitted: 5 years ago.
Category: Law
Expert:  James Mather replied 5 years ago.
Is there support for it in the mortgage contract?
Customer: replied 5 years ago.

probably - I have not read the contract only asked the bank how much they would charge

Expert:  James Mather replied 5 years ago.

All the legislation with regard to unfair
credit bargains and unfair terms, does not apply to commercial mortgages but
only to residential.

However, unless the terms and
conditions that you agreed to when you took out the mortgage allow for this
extortionate fee, then they are not allowed to charge it.

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