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Selling my property and paying early repayment charge?

herc182
herc182 Posts: 39 Forumite
Part of the Furniture 10 Posts Combo Breaker
in House buying, renting & selling
Hi all. Sorry if this is a stupid question! Our fixed rate ends on 30th June 2019. Luckily we have had an offer close to asked as of today (7th April). If we accept, does that mean we incur the EPC or does it only count after exchange of contracts (which I understand could be 8-12 weeks after accepting the offer)? Or is there any way of accepting the offer but deferring proceedings until after our 30 June deadline? Thanks
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Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    What are your future plans?
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    You incur the repayment charge at the time of repayment... which will be at completion, not exchange and certainly not acceptance of offer.

    We're a week into April now. Completion by the end of June is still quite likely, depending on chain.
  • herc182
    herc182 Posts: 39 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    He doesn't have a chain. We will move out to my mums temporarily. We could of course delay signatures until 1st July... :)
  • herc182
    herc182 Posts: 39 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Thrugelmir wrote: »
    What are your future plans?

    Not sure what you mean. But buying a house to live in
  • diggingdude
    diggingdude Posts: 2,482 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper Photogenic
    If delaying till 1st July I believe you are fine
    An answer isn't spam just because you don't like it......
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    The first thing is to ask your lender whether they would apply the ERC if you complete before 30th June - if they say no then go for a completion date that suits you, if they say yes then delay to 1st July or later.
  • herc182
    herc182 Posts: 39 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    agrinnall wrote: »
    The first thing is to ask your lender whether they would apply the ERC if you complete before 30th June - if they say no then go for a completion date that suits you, if they say yes then delay to 1st July or later.

    I got a very static response from their call centre that seemed very rigid on that EPC.
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    herc182 wrote: »
    We could of course delay signatures until 1st July... :)
    When you sign things is irrelevant. You just want to complete no earlier than the 1st July.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    I have to ask... Given that you knew there was an early redemption penalty if you complete before the start of July, why start marketing so far in advance...?
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Agreeing a sale does not trigger the Early Repayment Charge.
    Signing the contract does not trigger the Early Repayment Charge.
    Exchanging the Contract does not trigger the Early Repayment Charge.
    Completion of the sale does trigger the Early Repayment Charge, if done before the fixed rate ends.

    April to end June is not an unlikely timescale. Exchange end of May to Complete end of June.

    Sorted.
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