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Retention Deals

Hi,

Just wanted to ask some advice from the brokers out there.

We are currently looking to move house and will need to increase our borrowing. We have 15 months of a 5 year fix to run and there is an ERC of 3%. I have spoken directly to the mortgage provider and they told me that th only way to avoid paying the ERC is to port the mortgage and then take a second loan with them for the additional borrowing, providing we still meet the lending criteria.

A friend has mentioned to me that it is possible for brokers to access retention deals whereby the ERC is waived when a new product is taken with the same lender.

Is there any truth to this or is it an urban myth?

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Not a myth I've heard before.
  • LeoTLion
    LeoTLion Posts: 128 Forumite
    It sounded a bit unlikely to me, my general approach is that when lenders get a chance to turn you over for profit, they usually do.

    I'm not complaining, I knew the deal when I took out the mortgage.
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