Early Repayment Question

small_bird

I've just got approved for a new mortgage as I'm buying the other 50% of my flat but I have to pay an Early Repayment with my current provider Santander which is pretty huge because I originally signed up for a 10yr mortagage (I've learnt that lesson). Anyway I've just found out that my new provider Alliance and Leicester are merging with Santander - does anyone know if there would be a case to negotiate the Early Repayment charge as I'm technically with the same provider - sort of... It's a long shot I'm sure... Any advice appreciated.

beecher2

Afraid not - even if you'd taken a new deal with your existing lender you'd have to pay the ERC. You pay it for leaving the deal, not for leaving the lender.

Trying_to_be_good

Have you already looked at taking further borrowing from your existing lender, and so not having to pay the ERC (early repayment charge) for your existing mortgage as you'd be keeping that, too?

small_bird

Hi there I thought it might be the case about changing a deal rather than lender... Yes I did try with my existing lender but they were quite a bit more so it was worth taking a new deal even with the charge... Guess I'll just have to suck it up this time! thanks for the advice... I've only signed up for a 2 year deal this time