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

macca789456

I have had a 5.03% ten year fixed rate for 5 years my terms and conditions state i can pay the E R C and transfer to another product but even though there are lots of products available when i have tried to do this my mortgage provider Nationwide tell me they do not have any products available for people on a fixed rate mid term and all i can do is still pay the E R C and go elsewhere.This is clearly contradicting the terms and conditions both parties signed up to so are all these new products for NEW CUSTOMERS ONLY when there adds bragged that they didnt do that.

rinkerdink

Hi,

I took out a repayment mortgage with Northern Rock with an introductory rate that expires on the 31st of July 2012. This tied in nicely with emigration plans for September/October 2012. We have recently put the house on the market and have luckily attracted a couple of offers - I expected it to take a bit longer than this!. The ERC is for 4% of the mortgage value right up until the 31st of July on the paper work. As the mortgage repayments are less than £700 pcm I am reluctant to pay an erc of just under £4k for the sake of 2-3 months of payments (I'm estimating completion of sale will happen in May-ish). Is there any way of avoiding the erc? I realise and accept that I sgined up to the deal etc etc but I am wondering if there is some financial mechanism that would save me some money and not delay the house sale. I'm wondering if I could still make the monthly payments to Virgin (the bought NR) or pay up all the interest that was due or even beg and plead for a reduction in the erc at least. I'd be prepared for them to hold the funds untill after the 31st of July... basically is there any way I can try and mitigate the cost of the ERC given the closeness to the expiry of it?

I have considered taking the house off the market again and waiting a month or two but in an ideal world I would prefer to try and make this work some other way

Thanks very much for reading and for any advice.

dunstonh

Is there any way of avoiding the erc?

No.

Lenders have been know to waive it if you are moving house and using them for the new mortgage if you are in the last few months. However, it is only on a goodwill basis.

I'm wondering if I could still make the monthly payments to Virgin (the bought NR) or pay up all the interest that was due or even beg and plead for a reduction in the erc at least.

The mortgage has to be closed when the house is sold.

You can always ask them but dont go in there hopefully.

rinkerdink

dunstonh wrote: »

No.

Lenders have been know to waive it if you are moving house and using them for the new mortgage if you are in the last few months. However, it is only on a goodwill basis.



The mortgage has to be closed when the house is sold.

You can always ask them but dont go in there hopefully.

This is pretty much what I thought, i'll see if the old charm works, i'm going to ring them tomorrow morning and give it a try. Do you think it's worth trying to speak with a manager or supervisor or anything or just take my chances with the call centre worker?

MarkyMarkD

If there is no angle with the lender, you could sell the property with a delayed completion date and enter into a rental agreement with the purchaser for a few months, so you can effectively sell up and move out, but keep the mortgage going.

This would require your lender's consent and a willing buyer who doesn't need to purchase instantly - but I would certainly consider it if I were the buyer, at the right price (probably less than their mortgage would cost them) and if I were not also subject to mortgage porting conditions which didn't allow a "gap" between mortgages.

dunstonh

Do you think it's worth trying to speak with a manager or supervisor or anything or just take my chances with the call centre worker?

Neither are likely to have any authority to waive an ERC. A call centre worker has barely any authority to do anything. Branch is the best bet but you are looking at such low odds to begin with.

jamesd

You might consider whether your purchaser will agree to live in the property rent free as your tenant from the date that they want until the early repayment penalty expires, then finally complete immediately after that.

lnjk

I have a Spanish mortgage which I have 7 years left to pay. To pay of extra amounts I am charged @ 1%. can anyone please confirm if I was to pay the whole mortgage off would I still only be 1% or is their another fee to actually complete your mortgage early?
Thanks

Thrugelmir

lnjk wrote: »

I have a Spanish mortgage which I have 7 years left to pay. To pay of extra amounts I am charged @ 1%. can anyone please confirm if I was to pay the whole mortgage off would I still only be 1% or is their another fee to actually complete your mortgage early?
Thanks

You need to read your mortgage offer documents to ascertain the precise charge.

Are they written in Spanish?

Cobbler78

I have had a offer on my house and the buyer wants to complete before 24th March so as not to pay stamp duty. My problem is my fixed term comes to an end on 30th March, however, my final payment in this fixed terms is on 6th March. I have called Accord and have been told that even if I complete on 23rd March, I will still be liable for the 3% ERC fee. Does this sound correct? Surely there is a way round this for the sake of a week, especially as I will still be making all 24 payments in the 2 year fixed rate product in full.