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ERC & New Mortgage help!

jack900
jack900 Posts: 26 Forumite
in Mortgages & endowments
So I am buying a house as a FTB with my partner who currently owns a flat, with a fixed rate mortgage from Santander, which they are in the middle of. My partner is selling that flat to put down a deposit on the new house we will buy together.

We are looking to repay the current Santander mortgage from the sale of the flat and we plan to get a new 5 year fix with a new lender.

My question is, do we need to contact Santander to inform them that we will cancel our mortgage with them, or will it be done by the new lender or our conveyancer?

Thanks,
Jack

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The existing mortgage will be settled upon the sale of the property. There's no need for you to do anything as the conveyancer will handle this for you.
  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Have you considered staying with Santander and porting your current deal to avoid paying the ERC?
    I am a mortgage adviser.
    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.
  • jack900
    jack900 Posts: 26 Forumite
    Wh05apk wrote: »
    Have you considered staying with Santander and porting your current deal to avoid paying the ERC?

    Yes but the rate is not at all competitive, and the interest we would pay overall is more than interest+ERC+other mortgage fees we would pay on a new competitive mortgage.
This discussion has been closed.
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