Any instances where a mortgage company has waived an ERC if you agree to start a new

mac24

Deal?.........I'm looking to borrow some more money from my mortgage company. Im almost 4 years into a 5 year fix. My plan was to borrow the new money on a variable rate and bring the two loans together when the 5 years are up and look for a deal for the whole amount.
I wondered if it was worth asking that if they waive the ERC(£1800) I'd be willing to start a new deal with them for the whole amount. Ther rates are competitive(Britannia/co op)
I'd save money, I wouldn't have the hassle of renegotiating in 16 mths, and they'd get my custom for another few years. Or is that a complete no no?

Thrugelmir

Mortgages aren't negotiated. Lenders have products you can either take or leave. ERC's are in place for commercial reasons not as an intentional penalty to the borrower.

POPPYOSCAR

Our fixed rate came to an end recently.


We took out another one and redeemed part of it as we could not get that part of it on a fixed rate.


The redemption date fell on a bank holiday and they would not let us pay it the day before and apply it the next day. They said if we paid it even a day early we would face the full ERC.


So good luck with what you want to do.

David_White

They're not really in a position where they need to negotiate with you I'm afraid.

ThePants999

However, they may have a policy here that will help you somewhat. Lenders may at least partially refund the ERC (e.g. 50%) if you take out a new product with them shortly afterwards. You'll need to ask them.