remortgage and early repayment fee

salduck

I am thinking of selling my house but have an early repayment fee of over 2000gbp iif i do before 2010. Is it possible to remortgage to another mortgage which does not have the ERC and then pay it off?
Thanks
Sally

dwsjarcmcd

Many mortgages are portable, so ask your current lender to switch the loan to the new property. If you need an additional loan, you can take that on any of the lenders current range. Depending when you took the original loan, it will probably be cheaper to retain you current loan anyway.

First thing to do is to speak to your lender and see if your mortgage is portable

David

salduck

thanks but i am not buying another property I want to pay off my mortgage
Thanks

cw18

You would have to pay the early settlement fee even if you remortgage -- anything that means you pay back the loan is seen as an early settlement.

So no, there's no way of avoiding it.

david29dpo

Within my 3 year deal, i can pay a maximum of 10% of the capital per year without fees. Better than nothing.

dwsjarcmcd

salduck wrote: »

thanks but i am not buying another property I want to pay off my mortgage
Thanks

If you are not buying another property, how can you re-mortgage? You are turning a secured debt into an unsecured debt.

If you are redeeming the mortgage, which is what your doing, then you cannot avoid the ERC's