Early Repayment Charge Expiry when Remortgaging - Which Completion Date?

Supercatspeed

We're currently in the process of remortgaging. Our original mortgage with Virgin Money has early repayment charges which expire on 1st May (this is also the end of the fixed term interest rate). We are trying to sort a completion date to move across to our new mortgage with Clydesdale. To avoid early repayment charges, do we complete on 30th April, 1st May or 2nd May? Our mortgage payments normally come out on the 1st of the month, and we've received a letter from Virgin saying we will switch to their normal rate and a new direct debit will be taken on the 1st May. Obviously we don't want to pay early repayment charges, but equally don't want to pay Virgin another mortgage payment instalment. I'm sure this is really obvious, but I've confused myself with the completion dates.

davidmcn

If the solicitors dealing with the remortgage are aware of the end of the ERC period then they should ensure repayment isn't made before its end - in practice redemption is often done the next banking day after completion of the new mortgage, so they could complete the new mortgage on 1 May and redeem on 5 May (remember it's a bank holiday weekend), or if you want to play safe then say 5 May. The extra interest for a few days isn't going to break the bank.

Supercatspeed

Thanks, that’s very helpful