Refund of Early Repayment Charge - Mortgage

juliehelen

Hi there - I was contacted out of the blue from my previous Mortgage Company saying that I might be eligible for a Refund of my Early Repayment Charge £about £1,600) when I paid off a recent Mortgage. First thing I did was gather all the evidence they needed, filled out the form and sent it off. To cut a long story short, 4/5 letters later they still wouldn't accept my information as it wasnt on the exact form they wanted, entitled "Completion Advice" even although all the evidence they wanted was sent to them (albeit on 4 different forms). Eventually I manged to presuade my current mortgage provider to write me a letter confirming everthing that was needed on one letter (on headed paper). I'm about to send this off but knowing my luck will be knocked back.

Can someone give me a note of the rules for Refunds of Early Replayment Charges as I dont want to starting spending the money in my head and then get let down.

I read somewhere about the rules being about the new mortgage having to be taken out within 3 months of the previous mortgage, can be with another provider and has to be £3,000 or more above previous mortgage but I cannot find this again.

I'm concerened that my new morgage was completed on the 14th January 2011 and my old mortgage paid on 21st January 2011 (bought new house for cash (borrowed) and then took out mortgage against new house to pay off morgage of old house while it was on the market trying to sell it).

I really hope they dont say something like I'm not eligible as I took out new mortgage before I paid off old mortgage.

Any advice would be really appreciated.

Cheers

J.

dunstonh

Can someone give me a note of the rules for Refunds of Early Replayment Charges as I dont want to starting spending the money in my head and then get let down.

There are no rules. The ERC is fair and legal and no ruling has been made against them.

Some of the high risk lenders made a decision that it was cheaper to get rid of certain borrowers by waiving the ERC as an incentive. This would reduce the size of their "at risk" book. This was effectively a goodwill gesture by that lender and at their discretion.