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Avoiding ERC?
womble12345
Posts: 591 Forumite
My girlfriend is selling her house and she has a few years left of her fixed deal so is subject to a 3k ERC if the mortgage is redeemed. We plan to sell her house and rent for a while so that we can buy a new place together chain free with the existing mortgage ported over. Obviously if we chained a purchase up with the sale there would be no ERC payable but is there a way to put the mortgage on hold somehow for about 6 months and avoid the ERC? Does this kind of thing happen? Or should we just chain up even though it creates lots of extra hassle and makes us a more unappealing buyer to the people we buy a house from?
Thanks
Thanks
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Comments
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is there a way to put the mortgage on hold somehow for about 6 months and avoid the ERC?
The ERC is tied in with the redemption date of the mortgage which is tied in with the ownership of the house. If the house is sold, the mortgage has to be repaid there and then.
The only real options are to keep the house and mortgage until the end of the tie in or pay the ERC.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Damn, looks like we will have to chain up then. Thanks for the help.0
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Some lenders reimburse the ERC if you take on another mortgage within 6 months. Phone yours up to ask.0
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Thanks beecher2, I will get her to call them to go through options.0
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