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

MarkyMarkD

Most lenders charge ERC on the amount repaid, but there is no absolute rule that they couldn't have worded it "on the amount initially advanced" or indeed "on the full facility" in your case.

The wording in the offer seems pretty clear, so I think they are simply mis-advising you. The simple answer is to ask for a formal, written, redemption quotation as that will be more accurate than the random guesswork of a member of staff.

ukjamesscott

I'm selling my house approximately two weeks before the end of a 5 year fixed period on my Principality mortgage. As a result I'm being charged a full early repayment penalty.

Does anyone have any experience with negotiating this amount down, given the very small amount of time before the charge would have not applied anyway?

FYI - I'm moving abroad so can't transfer to a new mortgage.

Thank you!

James.

harvey115

Try speaking to the lender, they might be able to compensate.

Otherwise is it not possible to delay the completion until the end of the 5 Years fixed?

dunstonh

Some lenders may take a view if there is a very short period left (couple of weeks, maybe a month). However, it is reliant on their goodwill. Like any line in the sand, if you keep moving it there will always be someone that is just the wrong side of it.

If you dont ask you dont get.

bestmoomy

I phoned C&G about Early Repayment Charge of over £5k. They said it was because I had a fixed rate and that was the amount they would loose. So not entitled to pay back.
Did get my Closing Admin over charge back though with no problem, thanks to advice here.

Budgecore7

Hi Guys

My mortgage is with Bank of Ireland. I know a few years back they were offering their old Bristol and West mortgage holders out of their ERC's to move. I owe a £3,261 ERC fee with a £195 one off admin fee of some sort to cancel early. Realistically is there anyway, seeing as its Bank of Ireland, would they let me off the ERC?

dunstonh

Budgecore7 wrote: »

Hi Guys

My mortgage is with Bank of Ireland. I know a few years back they were offering their old Bristol and West mortgage holders out of their ERC's to move. I owe a £3,261 ERC fee with a £195 one off admin fee of some sort to cancel early. Realistically is there anyway, seeing as its Bank of Ireland, would they let me off the ERC?

Some lenders say it as a cheaper option to get rid of their potentially bad debt cases and waive the ERC during the height of the credit crunch. That has gone away for the time being.

You can ask them if they will waive it but you don't see much of it going on nowadays.

sam959

interesting!

smiddhthediddy

Hi guys

Am currently looking to switch to Natwest from RBS to allow me to borrow more at a better rate. Only a few months into a new fixed rate unfortunately (had to take this at the time as was being made redundant!) which means am looking at a hefty penalty. My question is though as I am staying within the same banking group is there a way for this to be contested/waived??

_Andy_

smiddhthediddy wrote: »

Hi guys

Am currently looking to switch to Natwest from RBS to allow me to borrow more at a better rate. Only a few months into a new fixed rate unfortunately (had to take this at the time as was being made redundant!) which means am looking at a hefty penalty. My question is though as I am staying within the same banking group is there a way for this to be contested/waived??

No there isn't