Early Repayment Charges

hoots198

Hi,

I have a fixed rate mortgage on my property which I am having to sell. I have found a buyer but they want to move the beginning of next month. If I go ahead I will have to pay the ERC of nearly £4k even though the mortgage deal finishes on 31st Jan. Seems a bit harsh considering I will only have 3 weeks left on the deal. The ERC would be the same if I had sold the house with a year to go before the fixed rate finishes. Just wondering if anyone else has been in this situation before?

Thanks

Meeper

The ERC has an end date. That's the terms of the deal, and that's just the way it is.

If you have only just found a buyer, the chances of the mortgage, legal work and everything else being done by the start of January is pretty much nil. Completion at the end of January would be a lot more likely given the timescales involved and the Christmas break which is coming up. If they are particularly difficult, offer to pay for them to rent somewhere for a month. This will be cheaper than £4k.

Thrugelmir

How far advanced are you in the sale process?

dunstonh

That is the problem with lines drawn in the sand. You are either one side of it or you are not.

Some lenders do waive or reduce the fee if you ask them. Especially if you are borrowing with them on a new mortgage on a house you are buying. However, it is a fair fee and you are reliant on their goodwill (and if you are not using them in future, there may not be a lot of goodwill as they have nothing to gain and everything to lose)

jamesd

hoots198 wrote: »

I have a fixed rate mortgage on my property which I am having to sell. I have found a buyer but they want to move the beginning of next month. If I go ahead I will have to pay the ERC of nearly £4k even though the mortgage deal finishes on 31st Jan. Seems a bit harsh considering I will only have 3 weeks left on the deal. The ERC would be the same if I had sold the house with a year to go before the fixed rate finishes. Just wondering if anyone else has been in this situation before?

Have you considered paying them to rent from you for a month after exchange and before completion? That way they get to move, you save money and they get some money.

hoots198

Thanks for the replies guys.

I had to exchange contracts today as the buyers wanted to pull out if I didn't and I couldn't afford that. They were unwilling to wait to move in until 1st Feb so I suppose I have to except the erc. They didn't want to go into a hotel for few weeks as they have a baby due.

I doubt I will get anything out of writing to lender as I'm going to be renting for a while.:(