So penalty fees get cheaper?

RebeccaLouiseUK

Hi,

My friend and I bought a property and we are in the process of selling it. We accepted an offer today with no chain. (As we are both moving in with our respective partners)

The thing is our fixed rate mortgage ends on 31/5/18, so we can’t move until this date at the earliest.

Will penalty fee be cheaper since it’s so close to ending? My penalty fee is £3000. I just kinda feel sorry for the people buying my house, because due to no chain everything could be completed within the next 6-8 weeks. But due to our mortgage rate, we can’t. Anyone else been in this situation? :money:

silvercar

Only you can see what conditions have been put on your mortgage.

Either your buyers will wait or they will threaten to pull out if you don't move earlier.

One option will be to exchange soon-ish and complete after the penalty period.

Fisa002

I would be honest with them from the onset and inform them when your likely to move. The last thing I would like is to be thinking I could move within a couple of months but find that the vendor is deliberately stalling. If your honest from the start and they are genuine buyers and really want your house they will wait. If not then there are always other buyers.

ValiantSon

You could move before that date, but doing so would mean that you incur an early redemption charge (ERC). The ERC does not stop you redeeming the mortgage before that date. Given the many potential problems along the way with a sale, it might well be worth considering the possibility that you do complete before this date and just accept the cost. Doing so could help you achieve a completed sale in a sensible time frame, while not doing so could see you lose your buyers and then wait a long time for more to come along.