Mortgage early payment fee - still payable after term expires

Funder

Hi all,

I'm just about to move house and coming to the end my 3 year fixed with the coop bank. I tried to time the move to coincide with this ending.

I got the 3 year fix on August 6th 2012, therefore I thought the fix would end 3 years later on August 5th 2015.

However, just checked my documentation and it says ERC is payable until 1st September 2015. I know it's not a long time but I've been trying to delay the move already and don't want to delay any longer if possible. Are they allowed to do this?

Any help much appreciated.

Thrugelmir

Funder wrote: »

Are they allowed to do this?

Yes. It's the contractual terms you signed up to in accepting the mortgage offer.

Mortgage terms end on the last working day of the month for administrative reasons, i.e. technology. Simply not possibly to cope with the multitude of dates and products otherwise.

dunstonh

I got the 3 year fix on August 6th 2012, therefore I thought the fix would end 3 years later on August 5th 2015.

That isnt how fixed rate mortgages work. They are never 2 year or 3 year from the date of advance. They are to a specific end date.

Are they allowed to do this?

You mean, are they allowed to honour the terms of the contract that you and they agreed to? yes they are.

amnblog

dunstonh wrote: »

They are never 2 year or 3 year from the date of advance.

Many are, it appears this is a set date product which is more common.

kingstreet

As has been intimated, you probably purchased a fix until 30 September 2015, not a three year fix.

You should refer to your original key facts illustration where section 4 will set out exactly what you bought.

FWIW our suitability letters are deliberately phrased "Halifax plc fixed rate for three years until 30/09/2015" for example.

If you have evidence you bought a fixed rate for three years from completion, you need to take this up with the lender.