Porting but changing repayment method.

dona3853

Hi

Does anyone know if we port our existing mortgage rate/ term during our house move but switch to interest only from repayment do we have to pay early repayment charges? When you port to avoid ERC's do you need to keep the repayment method the same or not? We are keeping the fixed rate and remaining term of a 5 year product and also adding to it by arranging a second part to the mortgage for extra borrowing we need to buy the house. This extra borrowing is on a new interest rate and term but will be combined to the other for a single monthly payment. We are with National Counties BS by the way and they are closed for the weekend. We have had the mortgage offered to us but our solicitor has done the mortgage redemption figure and it includes the ERC. Don't know if they have made an error or unaware that we are porting or we have misunderstood porting and ERC's.

Thanks

Thanks

Thrugelmir

From the National Counties BS website.

If your existing mortgage product does have an early repayment charge

Changing product will incur an early repayment charge. To avoid this, as long as the property you are moving to meets our standard lending criteria you can apply to transfer your existing mortgage product terms to a new mortgage on the new property. No early repayment charge will become payable provided your sale and purchase take place at the same time.
In addition, if you require a larger loan than you have at the moment you can select a new product from those currently available for property purchase for the additional borrowing you need.
Alternatively, if you intend to repay part of your existing mortgage when you move please remember to check the terms applying to establish how much the early repayment charge will be. The charge will only be applied to the amount of the loan repaid.

Firewallrob

The early repayment charge is for the product (int rate) and amount of money on that product.

Don't worry - you can take int only or C&I mortgages and avoid the Early Repayment Charge.....as long as you take the same deal on the same amount.

Any extra can be put on any a/v deal.