Confused about remortgaging and early repayment charge

Greenwich_girl

So our 2 year fixed deal comes to an end on 30/11 and we've used a broker and been approved for a new 5 year fix with another lender at a really good rate. All good.

The paperwork with our current lender states the following:

'The early repayment charges that will apply to this mortgage are: From completion of the mortgage until 30/11/207, 3% of the balance, plus up to one additional month's interest. Following the above period, interest will be charged to the end of the month of redemption.'

So I was thinking that the earliest we can complete is the 01/12.
However, according to our current lender we can complete anytime from 01/11 without incurring erp but they would charge interest to the end of that month. We obviously don't want two mortgage payments in one month so the solicitor is saying that we should complete on 30/11.

Argh. Is this right?

Thanks!

Tom99

I would check with the bank that you can complete on 30/11 without ERC.

From your wording a redemption on 1/12 would be charged interest til 31/12 I think, since December would then be the month of redemption.

Thrugelmir

Greenwich_girl wrote: »

plus up to one additional month's interest.

but they would charge interest to the end of that month.

While the lender is foregoing the 3% ERC. Seems as if they intend charging interest to the 30/11 even if the redemption date is earlier is earlier. Your solicitor is correct. There's no benefit in paying interest on the borrowed money twice. Will greatly diminish the point of remortgaging.

Greenwich_girl

Thanks for the clarification.
Presumably as a remortgage it is very unlikely that it wouldn't complete on the agreed date?