Penalty Clause avoidance

mervynreeves

Due to unfortunate circumstances, I'm having to sell my house and face the invidious situation of paying 4k in penalty clauses because it's unlikely I can find a suitable (smaller) dwelling in a relatively short period of time, i.e. to be able to buy at the exact time I sell.

It turns out I have no grace period but I was wondering whether there was any way I could get my mortgage lender or another to somehow absorb some of the bill in some way in return for me taking out a mortgage with them within a fixed time frame, e.g. within 6 months? At the moment I'm accepting the fact that once I've sold I'll be paying this enormous bill but am wondering whether I should be looking at alternatives. Has anyone out there had any experience of this predicament or knew whether any lenders offered any deals along these sorts of lines?

thanks

dwsjarcmcd

Hi,
You need to either look at the T & C's or speak to your lender. In my case, my lender allowed me to redeem the mortgage and pay the Early repayment charges, however, if I took a mortgage of the same amount or larger within 6 months of the original redemption, then these would be refunded (which they were). If the mortgage was smaller, they would have refunded the fees proportionately i.e. 50% of the original mortgage mean 50% refund of the charge.

Speak to your lender

silvercar

Same conditions for me, redemption fees refunded if new mortgage taken within 6 months.

TangentMan

Definitely speak to your lender.

It is sometimes referred to as a "non-simultaneous port" which basically means porting your old rate and ERC over to a new property within an agreed timespan (as the previous posters have said often 6 months).

One thing to consider, if you are moving and changing the borrowers on the mortgage this might mean you can't do the above.