ERCs- Early Repayment Charges - early exit fees. (merged).

dwsjarcmcd

Beatlefan wrote: »

Does anyone know if you have to pay the same amount if you cancel your switch, but stay with the same company?.

Yes you would pay the same amount. You also need to factor other fees into the equation. If you stay there could be application fees payable and if you go, possibly legal fees.

[/QUOTE]If we ditched our fix, but stayed with the same mortgage provider, would that impact on our credit score at all?.[/QUOTE]

No it wouldn't indeed you wouldn't even need to complete a new application, just sign a transfer request.

[/QUOTE]However I have one default on my credit record (5 and a half years ago), although my credit score is "good" according to Experian with a score of 900. The rest of my credit record is fine (although I need to cancel some old store cards I never use any more). Does anyone know if I would be able to move my mortgage to another provider with a credit score like that? It didn't stop us in 2006, when the default was much more recent, although I know credit's much harder to get nowadays!.[/QUOTE]

I would have thought that would be ok

MarkyMarkD

I'd be very surprised if most lenders would allow you to pay the ERC and exit your fixed rate, to switch to a variable rate.

There's no obligation on them to do so - the ERC is an option to redeem, not an option to switch.

eco

If we ditched our fix, but stayed with the same mortgage provider, would that impact on our credit score at all?

Hi, mortgages bore the life out of me and I know I should understand them better, however this has probably been answered but my fixed rate ends in december, and been the lazy @rse I am thought I'd stay with my current lender, am I right in thinking my intrest rate will then be flexible and if I do decide on a fixed rate in the future I won't pay any exit fees?

Thanks for any reply.

MarkyMarkD

Almost definitely your revert rate will be a variable rate without any overpayment or other Early Repayment Charges.

In_Need_of_Help_4

Hi all
not sure if in right place but know that you guys will send me in the right direction:
in a tmb mortgage that was fixed in 2007 for 5 years, to be fully portable, i find today after a p0honecall that in 2008 they stopped lending and thus mortgage became un portable! Any one else in this situation, stuck in 5 year fixed fees still payable but mortgage not portable?
Nedd your help please, what should we do> Looking at selling at Auction in an effort to get some of the equity out and then go into rented.???????
thanks in advance

:eek:

MarkyMarkD

I'm not sure why you are selling at auction unless (a) the property is defective or (b) you are desperate for funds. It won't get you a great resale value.

walshi123

Hi All, forum newbie here.

Last year I received a letter from my broker stating that the fixed rate term for my mortgage with Halifax was due to finish and did I want him to get me a better rate? I agreed and he went ahead and found me a better rate which was still with the Halifax as it happens.
However - It has since transpired that this was 3 months early! Halifax have charged me over £1500 in ERC! Obviously I would have just waited another 3 months for my fixed rate period to fully finish if I had known. I followed my brokers advice thinking it was safe to do so.
My broker is aware of the situation and he is fighting with the Halifax to refund the charges. The Halifax appear to be not wanting to budge, which I can understand. However it still leaves me as the innocent party with a £1500 cost!

If my broker loses the fight with the Halifax, would there be any kind of process for me to receive financial compensation? At the end of the day it was bad advice from my broker that's cost me. I'm loath to go against my broker as I respect him, but if I have to...

Any advice welcome

dunstonh

f my broker loses the fight with the Halifax, would there be any kind of process for me to receive financial compensation?

Yes. Your broker is liable for the advice given. If the broker has evidence of Halifax not acting on instructions (such as waiting until the current deal finishes) then the complaint should go to Halifax. If the broker has no evidence of this then you put the complaint in against the broker.

At the end of the day it was bad advice from my broker that's cost me.

Possibly but possibly not. If you used the Halifax to roll over into a new deal then there would be no remuneration to the broker. There is also only a small amount of paperwork. So, the full process may not have been done other than to say that you should go into xyz deal when the current deal finishes. Indeed, with many lenders you dont even need to put the request in writing. You tell them on the phone and they send the contract out for you to sign.

walshi123

Thanks for your response,

dunstonh wrote: »

Possibly but possibly not. If you used the Halifax to roll over into a new deal then there would be no remuneration to the broker. There is also only a small amount of paperwork. So, the full process may not have been done other than to say that you should go into xyz deal when the current deal finishes. Indeed, with many lenders you dont even need to put the request in writing. You tell them on the phone and they send the contract out for you to sign.

Regarding the above, I'm pretty sure the whole transfer was handled by my broker, to be honest I can't even remember signing anything but I guess I must have!

I have a letter from the Halifax and they are saying that my broker "has admitted that he misunderstood the terminology concerning the application process". As he has admitted fault then the Halifax aren't liable to refund the ERCs.
If I decide to put in a claim against my broker how would I instigate this? What is the claim process called?

dunstonh

Regarding the above, I'm pretty sure the whole transfer was handled by my broker, to be honest I can't even remember signing anything but I guess I must have!

when moving from one deal to another deal with the same lender there is virtually no paperwork. Usually its just a mortgage offer and key facts illustration issued in the post which you sign and return.

I have a letter from the Halifax and they are saying that my broker "has admitted that he misunderstood the terminology concerning the application process". As he has admitted fault then the Halifax aren't liable to refund the ERCs.

I am wondering if he tried putting it through as new application. Most strange if he has.

If I decide to put in a claim against my broker how would I instigate this? What is the claim process called?

You can do it a number of ways but the best is to put it in writing and call it a formal complaint.