Early Repayment Charge + Redemption Charge

Leeds_Fella

Hi,

Newbie here...

I entered into a 3 year fixed rate of 4.99% back in Jan 2006 and will be selling my house on Fri of this week & going into rented and then completing in 2 months on our new house.

I am being quoted the full 3% of the Early Repayment Charge, even though I have only 15 months left - is this right or should it be pro-rata

Should I also be paying a £295 Redemtion charge ERP Fee of best part 3.5K?

I have tried to "freeze my mortgage" for 3 months but the supplier (A&L) are saying I have not had a mortgage offer on the new property as the valuation has not been completed and therefore have not fulfilled all the criteria !

Feel harsh as I paid 1K to get into the deal and @ 3.5K to get out of the mortgage deal and all I want to do is freeze until I complete on my new house.

Pls - any advice / experience ??

Dan_Collins_2

Yes you will be charged the full 3% and yes you should pay it all, you entered into the mortgage and new this was the case unless you did not read the paperwork.

What you are trying to do is port. I believe you have 3 months to complete on the new property with A&L, on the same terms and conditions of the original loan, any further borrowing will normally have to go on a new deal.

In most, prob all, porting cases you pay the penalty and are refunded on completion as long as it is within the time specified, unless it is the same day then the solicitor ignores the penalty.

I have had this period extended a few times, stating that the client had done everything in his/her control to completre but something outside of the clients control has caused a delay. I have not tried this with A&L but they are normally a good and fair lender.

The freezing thing would never be possible, you may never complete and what property would the mortgage be secured on??

That sounds a little harsh but I am being honest as I can be.