ERC

caz789

Hi there, my husband and I wanted to port our existing mortgage with Santander to a new property. Current mortgage £91,000.00, wanted to port £70,000.00. Having decided that they won’t port the mortgage and want it paid off, the are also charging us a redemption fee. This feels very unfair as it is not our decision to redeem, the property is worth way more than what we wanted to continue to borrow. Can they do this? Any advise would be gratefully received. Thank you

[Deleted User]

Yes, they can do it.

Porting is always subject to the criteria at the time and the redemption fee will be in your terms.

dunstonh

This feels very unfair as it is not our decision to redeem

Actually, it is your decision to break the contact you agreed to.  You are the one moving house.      Porting is always subject to lending criteria which is why the advice is to only tie yourself in to less when you think you may move in future.

the are also charging us a redemption fee.

They will do.   The ERC is to buy yourself out of the deal (which will cost the bank money). The redemption charge is to repay the mortgage and you would pay that whether you were in a  deal or not.

Can they do this? 

yes.

Any advise would be gratefully received.

There is no advice really as there is no wrongoing or nothing unusual here.