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  • FIRST POST
    • house_togo
    • By house_togo 18th Oct 16, 5:18 PM
    • 4Posts
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    house_togo
    Remortgage offer - but higher ERC
    • #1
    • 18th Oct 16, 5:18 PM
    Remortgage offer - but higher ERC 18th Oct 16 at 5:18 PM
    Hi All

    I hope someone can help or provide some previous knowledge or experience.

    We are re-remortgaging to consolidate debt. We have 1 year of our fixed term left with our old provider and as such the ERC is £2000 more than anticipated.

    This for us does not matter as we will be in an amazing position and the ERC doesn't matter in the grand scheme of things.

    However I can't remember when doing the mortgage application with the broker if we had to say how much the ERC was, and as such I am now worried.

    Our broker told us the offer was given yesterday and the offer letter is on the way.

    My question is when the solicitor gets the settlement figure from the old provider with this ERC would it cause problems or would this not matter to the new provider?

    Thanks for any knowledge on this.

    Jo
Page 1
    • minimike2
    • By minimike2 18th Oct 16, 6:07 PM
    • 1,725 Posts
    • 1,291 Thanks
    minimike2
    • #2
    • 18th Oct 16, 6:07 PM
    • #2
    • 18th Oct 16, 6:07 PM
    How are you paying the ERC - Adding it to the new mortgage?

    The broker should have asked to see paperwork from you to confirm the ERC amount before making the application to ensure an appropriate mortgage amount was being applied for - If they haven't done this then they have dropped a clanger, as this is real basics....Even if it isn't being added it should be checked to make sure your financial situation allows what you are wanting to do.

    Did they take any paperwork from you re the current mortgage and maybe got it themselves from that?
    I am a mortgage industry professional. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • house_togo
    • By house_togo 18th Oct 16, 6:15 PM
    • 4 Posts
    • 0 Thanks
    house_togo
    • #3
    • 18th Oct 16, 6:15 PM
    • #3
    • 18th Oct 16, 6:15 PM
    Hi

    The question was asked in the initial consultation and I said 1 % then randomly was looking through paperwork and found the old KFI which shown 4%.

    If the solicitors get the redemption statement would they advise the new provider that its £2800 etc or would they not bother as it doesn't matter so to speak as we are borrowing extra anyway so it just gets taken off the extra we borrow.

    Financially it all is still fine and are still paying off the debt we said we would.

    I was just worried they would say wow this is to much we are withdrawing the offer or something like that.
    • minimike2
    • By minimike2 18th Oct 16, 10:02 PM
    • 1,725 Posts
    • 1,291 Thanks
    minimike2
    • #4
    • 18th Oct 16, 10:02 PM
    • #4
    • 18th Oct 16, 10:02 PM
    Well it does matter, because this means you will be short on the amount of money you need for your debt consolidation. This is material to your application as it means you will be unable meet the conditions of the mortgage to repay the debts.

    You need to call your broker in the morning and tell them.
    I am a mortgage industry professional. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
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