Excessive ERC on my mortgage

mechanicalman_2

Thrugelmir said:

When does the fixed term expire? 

30th November.
Edited as Emmia pointed out I don't know how many days are in November. 

Emmia

mechanicalman_2 said:

Thrugelmir said:

When does the fixed term expire? 

31st November.

31st October or December? Or 30 November?

MWT

mechanicalman_2 said:

Looking at other products I felt my ERC was much higher than rival products.  I therefore wanted to know if I had a case or not (for example certain sectors have T&C's that limit charges that can be imposed upon consumers).  If they answer is no (which it sounds like) then that is fine.  

The Ombudsman expects the ERC to be '...based on a reasonable pre-estimate of the cost to the lender of the mortgage being repaid early'.

Can't promise you'd be successful, but it sounds like there was no taper on the amount of the ERC if it was £8.5k at the start and is still £8.5k now, so you might get a reduction as it seems likely it would be hard for them to show that it is reasonable that the costs are still high close to the end of the period.

How far along in the process are your buyers?

It is taking some time to get a final mortgage approval and you are really only talking about 3 months now as we are only a week away from September...

Thrugelmir

mechanicalman_2 said:

Also, what makes you think you can sell a house and get it to completion date in 4 months?  Is it a no chain cash buyer?  Otherwise sounds over optimistic.

My chain is only 2 long, the bottom of the chain are in rented.  Surley it can't take 4 months? 

A few days lost here and there........ if you are in no hurry. 

haras_n0sirrah

Which lender?

[Deleted User]

mechanicalman_2 said:

Also, what makes you think you can sell a house and get it to completion date in 4 months?  Is it a no chain cash buyer?  Otherwise sounds over optimistic.

My chain is only 2 long, the bottom of the chain are in rented.  Surley it can't take 4 months? 

Oh it definitely can !
A transaction is only as fast as the slowest participant.
My last move was 2 of us in a chain, simple transaction however conveyancing issues led to a 6 month timeframe, neither of us happy but you can't force solicitors to move quicker.

mechanicalman_2

haras_n0sirrah said:

Which lender?

Virgin Money.

getmore4less

5% ERC are you sure it is not going down, some VM product are teared ERC some are fixed % for term.

what was the fixed term of your product.

mechanicalman_2

getmore4less said:

5% ERC are you sure it is not going down, some VM product are teared ERC some are fixed % for term.

what was the fixed term of your product.

100%. It has been 5% since day 1 and doesn't change. Most other mortgages I have seen have a 1% reduction year on year. 

MWT

mechanicalman_2 said:

getmore4less said:

5% ERC are you sure it is not going down, some VM product are teared ERC some are fixed % for term.

what was the fixed term of your product.

100%. It has been 5% since day 1 and doesn't change. Most other mortgages I have seen have a 1% reduction year on year. 

How long was the term?