Early Repayment Charge - Term ended

Peco141

I realise this may be covered in the sticky thread but couldn't find it specifically.

My partner's two year fixed rate ended in January 2012 so she's currently paying the mortgage lenders standard variable rate.

As her fixed has ended and she was ready to move house is the early repayment charge still applicable in this scenario?

rising_from_the_ashes

She'll need to look at the paperwork to see how long the ERC continues once the fixed rate ended - they vary (I was tied in for 2 years after mine finished).

It is possible to move without paying the ERC but it really depends on the lender, whether porting is allowed, and also the T&Cs in the original product - again a check of the paperwork will be needed.

Thrugelmir

ERC's are normally only applied for the duration of the product term.

Once on the SVR there are no penalties. Other than the standard charges which would be paid if you redeemed the mortgage and changed lenders.

Peco141

Thanks guys. I'll dig out the paperwork and see what it says. I'm hoping Thrugelmir is correct and that the ERC no longer applies after the product term finishes.

betmunch

Thrugelmir is very knowledgable, I think he is correct.

You would have to be very unlike to have a product in this day and age that had an ERC after a product period ended, but it is still possible.

Peco141

Found this on the nationwide site:

Early repayment charges (ERCs) for fixed and tracker rate mortgages

If you repay the loan or make an overpayment of more than £500 in a month within your deal period (i.e. the initial fixed or tracker term), an early repayment charge will be payable on the entire overpayment amount (you can overpay by up to £500 in a month without incurring any ERCs).
You will also incur an Early Repayment Charge if you redeem your mortgage during your deal period.
Existing Customers
Our ERCs have changed over time, so for information about the ERCs that apply to your existing mortgage please refer to your mortgage offer.
New Customers
The ERC payable depends on the type of mortgage you have and is detailed in the table below.

Found this in my original product offer though:

"The early repayment charge is the maximum charge you will be required to pay if you transfer to another product within the Benefit Period"

I think it's safe to assume that I can walk away from this deal with only the minimum administration fee.

betmunch

Peco141 wrote: »

Found this on the nationwide site:



Found this in my original product offer though:

"The early repayment charge is the maximum charge you will be required to pay if you transfer to another product within the Benefit Period"

I think it's safe to assume that I can walk away from this deal with only the minimum administration fee.

believe thats £90 IIRC

Peco141

Yep found the admin fees on another documentation I had lying around. Not bad then.