Any lenders to waive-off repayment charges?

madhusudhan

Just wondering if there are anu lenders who can waive off repayment charges? I have about 3k to pay as charges. I have a bit of savings (20k)that I want to put into capital but due to fixed with HSBC I coulnd't do so.

Thanks
M

Scott

Well, just because you can't put it into the mortgage isn't necessarily a bad thing. If you've got a good savings account and a good mortgage deal, you can actually make money by leaving it in the account until your ERC expires, as you'll earn more interest than you would save by paying it off your account (i.e. savings account with 5.5% mortgage with 4.79%).

Your question seems to suggest you were thinking of moving to another lender. Unfortunately, this would incur the ERC, so that's not an option.

Your best bet is to leave it in savings, or invest it in some secure way, so that when your ERC expires (most banks will send you a letter around a month before this happens asking you to take a new product) you can put it straight into your account, if you wish to do so.

This would also make it more convenient to continue saving, as the higher the amount in your account, the better your interest rate.

Anyway, it's not all bad. Just wait it out, don't fold and try to pay out on it.

Also, were you clearly advised of the early repayment charge when you were sold the mortgage? If not, you may be able to contest it. Ask for a copy of your offer of loan to ensure that there was no mistake on the document.

But to answer your question, most lenders will not waive the ERC, as it makes them more money than several years worth of interest, longer than most mortgages are retained by the lender.