Early Repayment Charge query on HSBC mortgage

swajarbal

We are about to move house, and are porting our current mortgage with HSBC.
There is a clause in the Redemption quotation that states:

"4.1 If your customer is taking a new fixed rate mortgage on repayment of this loan:

If the customer is transferring the fixed interest rate to a new HSBC Bank mortgage then the Early

Repayment Fee won't apply provided that the new loan is drawn down at the same time as the existing

loan is repaid and is for at least the same amount and repayable over the same term as the existing

loan.

In this case, when all our quoted lending has been repaid, we'll release any security we no longer require.

If the new fixed rate mortgage is for a lower amount, please send the quoted Early Repayment Fee and

we'll refund a proportionate amount."

I am confused about the part in bold. Does this mean that we would have to pay the ERC and then we would get it refunded sometime (when?) after completion? Our financial statement from the solicitor acounts for us having to pay the ERC, even though I have advised them it is not applicable. However I'm not sure if they have to pay it then it gets refunded straight away somehow?
Obviously I will query this with the solicitor, but they are currently thrashing out Exchange of contracts on the 3rd day of attempts, so don't wan't to confuse matters just yet.

davidmcn

The bit in bold just means they'll release their security over the old property when you've repaid the loan. I can't see anything there which says you'll need to pay the ERC. 

Thrugelmir

If you are porting your existing mortgage product to the new property then no ERC will be applied.