Moving house

quantic

Hi everyone,

We are currently thinking about moving house, our mortgage is up for renewal this year at the end of October. I understand that if you want to get out of your mortgage earlier you have to pay a fee, in my case 1% + £160 admin charge, does anyone know if this is the case if you are staying with the same mortgage provider but asking for more money?

Thanks

kingstreet

If you stay with the same lender, you may be able to "port" the rate to the same amount of your new mortgage as currently owed. This will enable you to avoid the payment of the early repayment penalty, or ERP.

Any increased borrowing is allocated to one of the lender's current products of your choice.

The discharge fee, £160 you mention is to redeem the mortgage at any time, so that will apply either way.

somethingcorporate

kingstreet wrote: »

If you stay with the same lender, you may be able to "port" the rate to the same amount of your new mortgage as currently owed. This will enable you to avoid the payment of the early repayment penalty, or ERP.

Any increased borrowing is allocated to one of the lender's current products of your choice.

The discharge fee, £160 you mention is to redeem the mortgage at any time, so that will apply either way.

We have just ported (and borrowed more) with Nationwide and have not paid the redemption fee, nor have we been told we will need to. I think this is the case because we are keeping the existing mortgage (on existing terms etc) and then topping up with what is in effect a brand new mortgage. I assume when we pay off/move we'll pay the redemption fees on both mortgages.

kingstreet

The £90 redemption fee?

Are you sure it isn't in the redemption figure supplied to your solicitor?

As this is effectively the end of the current mortgage account and the new account has a completely different number, I'd understand if they did charge it.

Check it, it may vary from lender to lender.