Thinking of moving house. Q about ERC

Coded

Hi all,

We considering moving house, but there would be a £3500 ERC.

We wanted a 20% deposit, but the £3500 stretches us slightly too much.

We therefore would pay the £3500 , have 15% deposit but would move away from our current mortgage lender.

If we did not have to pay the £3500 then we would have 20% deposit and would stay with the current mortgage lender.

Does anyone have experience with a situation like this? Do lenders move at all on ERC if it means they can keep you? Or is it tough luck?

Thanks for any replies.

kingstreet

Is your mortgage product portable?

You may be able to arrange a new mortgage with your current lender and at the point you sell and buy, the existing mortgage product is applied to your new mortgage, with any extra money being taken on one of the lender's new products.

In these circumstances it is usual for the lender to waive any ERC, unless you're borrowing less than your current mortgage and then a proportionate amount is payable.

It is of course subject to you being able to satisfy the lender's current criteria, status and LTV requirements.

Coded

I assume it is portable, as the mortgage advisor did say we could have the current mortgage on 5.99% then the rest on another product - but not sure if this would be 'worth it'.

opinions4u

Coded wrote: »

I assume it is portable, as the mortgage advisor did say we could have the current mortgage on 5.99% then the rest on another product - but not sure if this would be 'worth it'.

You're either going to have to:

1) Port that rate.
2) Pay the ERC.
3) Not move until the ERC expires.

When does the product with the ERC expire?

kingstreet

I think I'm going to answer the question which is asked, as when I go into "helpful" mode, I don't seem to give people the answers they are really looking for.

Do lenders move at all on ERC if it means they can keep you?

No. They don't. Their funding sources are fixed and as a result the ERC cannot be waived.

Coded

kingstreet wrote: »

I think I'm going to answer the question which is asked, as when I go into "helpful" mode, I don't seem to give people the answers they are really looking for.


No. They don't. Their funding sources are fixed and as a result the ERC cannot be waived.

Thank you :T

dimbo61

Now I have no idea if you would pass the affordability , LTV, income checks with YBS but they have a 5 year fix and a tracker/fixed 5 year deal which MIGHT work out cheaper than porting your current deal
Without knowing all your details we cant work out what would be available to you.
Why not speak to one of the nice " whole of market brokers " who are experts at this

hcb42

I think the OP needs to speak to his current lender, not a broker, there might not even be aproblem if it is portable!