Mortgage Early Repayment Charge Levied

HM010

Hello,

I am hoping to get some advice. I wasn't able to port my mortgage in time from the sale of my flat to the purchase of a new one, due to COVID-19, specifically because the housing market went into lockdown and I suddenly found myself unexpectedly unemployed.

The mortgage lender, Santander, would only extend the three month porting window to five, and this was unsurprisingly not enough time in which to find a new job. As a result they levied an Early Repayment Charge of £6,500.

I don't understand how this can be allowed to happen given the circumstances and the flexibility shown by companies given the unprecedented circumstances.

I am now thankfully back in employment and in a position to get back on track and hope to purchase a property. I'm shocked that they refuse to offer any number of options to people in my situation that would be mutually beneficial.

Such action must be taking hundreds of thousands of pounds from sellers across the country and I don't believe a straight refusal is ethical or lives up to the standard expected.

Would anyone be able to offer any advice?

Thanks very much in advance.

dunstonh

I don't understand how this can be allowed to happen given the circumstances and the flexibility shown by companies given the unprecedented circumstances.

The problem is that the bank suffers costs if you repay the mortgage early.  If you are not going to pay them then who do you suggest should pay them on your behalf?

Would anyone be able to offer any advice?

Don't move house if you are in that situation.

HM010

They offer a porting window in the terms and conditions that allows for this. They could have simply given me more time to port the mortgage.

I couldn't have known in 2019 when I agreed to a sale that come completion in March a global pandemic would lock down the housing market!

dunstonh

It is enormously frustrating.  However, it isn't unfair.  Porting is only allowed if you meet lending criteria.

Thrugelmir

HM010 said:

They offer a porting window in the terms and conditions that allows for this. They could have simply given me more time to port the mortgage.

The bank isn't going to be granted more time. They'll incur their own penalty charges.