Is it possible to port a joint mortgage to 2 separate to avoid ERC

GMS

Certainly ask the lender the question regarding 'splitting' the mortgage but I suspect it will be too complex for them to set up.

One possibility could be either your daughter or her partner taking a mortgage on a new property with the lender. Assuming this is done relatively quickly then the lender may be prepared to refund a portion of the ERC's paid, i.e initial mortgage was 150k, new mortgage 90k.

In that situation the ERC would be 60k @ x%. Still a cost but a lesser one.

Of course the lender may not agree to the new mortgage and/or a partial refund of ERC's but it is worth asking.

MarkyMarkD

Good points, GMS. Most lenders will - subject to one partner being able to afford a mortgage - allow a partial port and therefore charge a partial ERC.

Welshnanny, further to kingstreet's explanation, ERCs are actually far lower than the financial loss to the lender in almost all circumstances at present - certainly true in respect of any longer-term (say 5 year) mortgages taken out just before rates fell like a stone in late 2008/early 2009.

4.99% was not a bad value 5 year fixed rate, in early 2009. Expectations of interest rates were higher then, over the 5 year term, than they are now. That is why Santander lose money by allowing early repayment.