£7,500 for Redeeming Mortgage Less than a Year Early?

hcb42

not a lot you can do, he would have had the paperwork and would have had this all read out to him on the phone - imho banks go overboard with this

I would wait personally, or if you think the interest rates and property price rises are going to increase your costs by over £7.5K then you need to suck it up.

I finished a mortgage with 4 months to go, and had a fee, so I know how it feels -i.e. money down the drain - but unfortunately he agreed to the paperwork

ACG

Im not sure about the process your going through but if the annexxe is/will be on separate deeds, he could port some of the mortgage over to that which would help to reduce the ERC.

Dave_Ham

For someone who has a specialist mortgage product and a team around you, surprised none of them suggested you checked Dad's details first and ascertain the ERC position to avoid this now.

Your Dad has virtually no chance of them waiving the ERC, we have seen people with much more stronger claims than ignorance be declined at all stages of formal complaint

It is incredibly unlikely that rates will increase enough to make the potential ERC payment worthwhile over this period of time.

Good luck

getmore4less

Moneysaver666 wrote: »

said a year or so ago Santander phoned him up, and asked him if he wanted to save money with a better rate. He just said yes, and signed up.

So what date and term was the deal when does the ERC stop?

If his mortgage was due to finish in May 15 it may not be as many month before ERC free.


Not sure what is stopping exchange now complete when ERC free.

dunstonh

but people still got back their unfair bank charges! (I know I'm clutching at straws here).

Not after the court case they didnt. The banks refunded early on to avoid going to court. After they won in court, that ended.

Yorkie1

getmore4less wrote: »

So what date and term was the deal when does the ERC stop?

If his mortgage was due to finish in May 15 it may not be as many month before ERC free.


Not sure what is stopping exchange now complete when ERC free.

Given the apparently specialist nature of the mortgage / OP's circumstances, this might be one situation where the risk of a lender's attitude changing before the mortgage funds are drawn down might be higher than is wise. Particularly if any existing mortgage might expire before completion without guaranteed renewal.