selling within mortgage term

kokolino23

Hello,
I couldn't find anything so far so mortgages with no penalties should we decide to sell the property by the end of our mortgage term.
I found mortgages with no early repayment charges but it's not the same as we come out of the mortgage term.
There is a way I can sell my house without accuring a fee for breaking the fixed term mortgage?
Thanks a lot

davilown

kokolino23 wrote: »

Hello,
I couldn't find anything so far so mortgages with no penalties should we decide to sell the property by the end of our mortgage term.
I found mortgages with no early repayment charges but it's not the same as we come out of the mortgage term.
There is a way I can sell my house without accuring a fee for breaking the fixed term mortgage?
Thanks a lot

If you can port your mortgage then you wouldn't be redeeming it so no ERC would have to be paid - bit confused by your post though as to whether you have an erc or not.

amnblog

I suspect our poster is talking about a fixed exit administration fee which is commonplace.

getmore4less

Some have unlimited overpayments without ERC as long as your don't redeem.

There is a way I can sell my house without accuring a fee for breaking the fixed term mortgage?

Don't know of any that offer that facility, pick a different product that does not charge ERC and has small exit fees.

Thrugelmir

kokolino23 wrote: »

There is a way I can sell my house without accuring a fee for breaking the fixed term mortgage?

The nature of the product requires such a fee for the cost to the lender of procuring the funds and the loss they would incur from early exits.

kokolino23

Sorry for the confusion.
I found some mortgages with no ERC but they don't mention anything about the exit fee.
In simple words: I've got 20 years left on my mortgage, I'll sign up to a new 2,3 or 5 year fix mortgage (let's say no ERC) and decide to sell the house by the end of this deal.
If I will sell it and repay the remaining balance on my mortgage, do I have to pay penalties ? Would that be considered ERC or exit fee from my mortgage term?

ricky_v

If you sell after the fix has ended then there's no ERC payable, only the exit fee/redemption fee if there is one. If you sell and don't port the loan to another property within the fix, then you'll get charged ERC.

I've got 20 years left on my mortgage

The term doesn't really matter IMO (it only determines the monthly repayments), I've recently got a 40 year mortgage that has a 5 year fixed interest rate. I don't intend to have that mortgage for the next 40 years and finally pay it off at 68 year old, I intend to pay it off (or remortgage, rates dependent) when I'm 33 years old, when the 5 year fix has ended and there's no ERC payable. If a mortgage has a 25 year term for example, it doesn't mean you have to keep it for 25 years, the fixed period (2,3,5,10 years, whatever) is what matters as that's when the ERC is applicable.