Selling house - mortgage advice (early repayment charge)

HappyHomeBuyer

Hello,

My partner and I have recently reserved a new build property and put our flat on the market. We accepted an offer at the start of December and it’s in the hands of the solicitors now. 

We have approximately £91,000 outstanding balance on the mortgage. We took a 2 year fixed rate in June 2019 and will be concluding mid-February which means we will have the pay an ERC which is 3% of the outstanding mortgage balance - so around £2700 or so. 

For anyone wondering why we didn’t just wait until the fixed period is over - we have to conclude in March for the new build and it’s hopefully going to be our forever home so we didn’t want to miss out.

My question is this - we have never overpaid on the mortgage but are permitted to pay 10% per year. We have the savings available that means we could pay £9100 towards the mortgage as an overpayment. Would it be worth doing this to bring down the early repayment charge? As much as I know we signed on the line and were aware that we’d have to pay the ERC if we paid off early, it still sticks in my throat a little to have to pay it so anything we can do to bring it down would be good.

Really appreciate your thoughts on this. I’m no expert in this area at all so your thoughts or advice might throw up something we haven’t considered. Thanks in advance. 

 

[Deleted User]

It's worth doing if you want to pay a smaller ERC.

getmore4less

You could look at porting with topup if your lender will let you. 

Price that up against a new option with the ERC.