Early Repayment Charges

logie48

When do these start?

Had a remortgage deal all sorted well in advance of my current deal ending on 1st August, however my rate for my product has now came down. Phoned up to question if I could secure the lower rate and was told can only do so if I pay early repayment charge.

Is this the case, even though my deal starts in over a months time?

amnblog

By ‘remortgage deal’ it sounds like you mean a rate switch with your current lender.

Each lender has their own view on swopping rates once booked. Some have no problem with it at all. Some will charge an admin fee to swop. Sounds like your lender takes the third option of considering it deal complete.

logie48

Sorry, when I mean mortgage deal I mean switch to another lender. However my new lender has reducer their no fee fixed rate.

[Deleted User]

Some will allow you to change rate prior to start of new mortgage. Some will insist you cancel the applicaiton and start again. I havent heard of anyone saying there are ERC's to pay.

The mortgage contract hasnt started so i dont see how they can enforce anything

Maybe try calling and speaking to a different person to see if you get a different answer

davidmcn

I suspect there's been a misunderstanding on the call.

muhandis

When we had the same thing with NW, they would allow me on the lower rate but said that it would apply only after I'd been on SVR for the first month after the fix, which would have negated any gain from the slightly lower interest rate.

Guess it differs from lender to lender. But I'm struggling to think of a scenario in which an ERC would ever come into play in this situation.

logie48 wrote: »

When do these start?

Had a remortgage deal all sorted well in advance of my current deal ending on 1st August, however my rate for my product has now came down. Phoned up to question if I could secure the lower rate and was told can only do so if I pay early repayment charge.

Is this the case, even though my deal starts in over a months time?

logie48

Cheers folks.

Will phone up again and question. There was a transfer of information between the call taker and a mortgage advisor during the call with the lender (I was put on hold while they had the discussion), so maybe the theory above is correct about misunderstanding.

I will phone up again and try speak to a mortgage advisor direct.

Many thanks again.