NatWest ERC payable when?

ben1985

Afternoon,

Hopefully my lodger is buying my flat this year and we're both saving the amounts we need.

As I am re-paying my mortgage early (5 year fixed rate) I get charged 4% ERC charge of £2502, this may not be payable anyway as I am planning to use NatWest again and I believe they refund all/part of the ERC charge if you complete on a new mortgage within 3 months of paying off an old one which I will.

However, the main question is, IF, the ERC is payable when would it be paid?

Please don't tell me it's payable before completion of the new mortgage as there is no way I could find that money like that, I assume it will be either deducted from the difference between paying back amount loaned or at least on completion day?

Any help or advice on when NatWest ERC charge is payable would be much appreciated.

Regards

BW

[Deleted User]

ben1985 wrote: »

Please don't tell me it's payable before completion of the new mortgage as there is no way I could find that money like that, I assume it will be either deducted from the difference between paying back amount loaned or at least on completion day?

I don't know if i am misunderstanding your post but if you are selling your flat and paying off your mortgage with the proceeds then surely there will be enough money to cover the ERC.
I would have thought that to avoid the ERC that you would need to complete a new mortgage at the same time. i.e. not 3 months later.

ben1985

hi, it was more about if i had to pay it when it would be needed? Im just hoping that if i do pay i dont have to pay it before completion as already have 1k booking fee, deposit and solicitors dough to find so either way just hope it aint payable before completion. Does that may it easier?

ben1985

hi, it was more about if i had to pay it when it would be needed? Im just hoping that if i do pay i dont have to pay it before completion as already have 1k booking fee, deposit and solicitors dough to find so either way just hope it aint payable before completion. Does that may it easier?

ben1985

hi, it was more about if i had to pay it when it would be needed? Im just hoping that if i do pay i dont have to pay it before completion as already have 1k booking fee, deposit and solicitors dough to find so either way just hope it aint payable before completion. Does that may it easier?

[Deleted User]

ERCs are normally payable because the mortgage has been redeemed either in part or in full. In a house sale your solicitor would normally sort out what needs to be paid to the lender and you would receive any proceeds left over.