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ERC's delay between selling and buying new house
wheldcj
Posts: 73 Forumite
Can anyone assist?
We are in the process of accepting an offer for our property which has been on the market for some time. Unfortunately the buyers are insistant on a quick sale otherwise they will go elsewhere.
Rather than lose the buyer we have thought about selling our house renting for 3-6 months and then buying our new property without rushing (and with the attractiveness of having no chain ourselves!)
Trouble is we have an ERC that expires in May 2013 which will cost £2,000 to get out of. The mortgage rate is very good and we have the additional mortgage signed off by the same bank. Therefore it is just a case of logistics! Do banks give you grace between selling a property and completing on your new deal or will they want the ERC paid straight away?
We are in the process of accepting an offer for our property which has been on the market for some time. Unfortunately the buyers are insistant on a quick sale otherwise they will go elsewhere.
Rather than lose the buyer we have thought about selling our house renting for 3-6 months and then buying our new property without rushing (and with the attractiveness of having no chain ourselves!)
Trouble is we have an ERC that expires in May 2013 which will cost £2,000 to get out of. The mortgage rate is very good and we have the additional mortgage signed off by the same bank. Therefore it is just a case of logistics! Do banks give you grace between selling a property and completing on your new deal or will they want the ERC paid straight away?
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Comments
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IF they accept this, you will pay the ERC and have it refunded when you complete your new mortgage.
However, not all lenders will do this and some will have a three month limit.
You need to ask them. We cannot give a definitive answer. Read the Key Facts Illustration and/or mortgage offer from when you took out the current mortage. It will be in sec 10 of the KFI "What happens if you don't want this mortgage any more?"I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Unfortunately the buyers are insistant on a quick sale otherwise they will go elsewhere.
Don't feel pressured. Transactions often take longer to complete than expected. Your buyer may well play games as well to suit their own timetable. So agree to the offer and start looking for a new home yourselves.0
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