How to avoid an Early redemption charge ?

logzlad

Hi All,
I would be most grateful if any body can advise about the following situation:-

My daughter and husband re-mortgaged their house earlier this year on a 5 year fixed deal at 2%. Now they have decided to move to a larger much more expensive house and I think because the LTV is too high, their building society won't let them port the mortgage over to the new property. They are saying that they would have to default to the SVR which is about 5%. The ER payment would be in excess of £3000 which is a big hit.

They have about £35000 equity in the house they are selling, which is valued at £105,000 and the house they want to buy is £240000.

Thanks in anticipation

BorisThomson

They agreed to it at the time of taking the mortgage, if they now wish to redeem the mortgage they're going to have to pay it.

I'm not sure what else you want us to tell you!

logzlad

Thanks Boris, It was just in case there is a way round it

amnblog

This will be a lesson for them on planning ahead.

getmore4less

My daughter..........They have about £35000 equity in the house they are selling, which is valued at £105,000 and the house they want to buy is £240000.

that's going from 66% LTV to 85%LTV.

Thanks Boris, It was just in case there is a way round it

big gift from bank of mum and dad to meet the lenders LTV porting requirement.