ERC on redemption statement?!

BizHighflyer

Hello,

Asking for a general consensus from you all here and would really appreciate your thoughts!

Nationwide have thrown on a £12k ERC onto the redemption statement, even though I am porting my mortgage product over to the new property. There’s no break in the mortgage, I sell and buy in the same day, it’s literally a lift and shift with a new product put on top for the new property.

My solicitor has told me I should pay this but it would be refundable but this seems ludicrous to me. I’m simply not liable for ERC as far as I can tell and I don’t have a spare £12k just sat about to pay it anyway!

Do I need to pushback on this or am I missing something? Surely my solicitor needs to pushback to Nationwide and ensure the sum isn’t payable if it’s only to be immediately returned anyway?

Thanks in advance!

dimbo61

Call your lenders mortgage centre in the morning and ask why have you put this erc charge on our redemption statement 

MWT

I wouldn't expect the ERC to be there if you are porting the entire mortgage on a same day sale/purchase.

If it isn't the entire mortgage amount being ported at the same LTV then it may be correct...

BizHighflyer

MWT said:

I wouldn't expect the ERC to be there if you are porting the entire mortgage on a same day sale/purchase.

Correct - it's all happening on the same day! Simple life and shift porting of the mortgage. Not expecting the ERC as a result..

MWT

It is the full amount without a change in the LTV though, right?

i.e. you are not porting it to a lower value property for example?

[Deleted User]

Erc is always included and the mortgage offer that solicitor gets will state that if completing simultaneously then to ignore the erc on the redemption statement.   

MWT

Sounds like the solicitor didn't read the small-print this time then ...

adamcarvell

When we moved 2019 the ERC was paid by the solicitor alarm bells I was fuming then it was returned by Santander within 24 hours panic over we ported our mortgage too.

BizHighflyer

MWT said:

It is the full amount without a change in the LTV though, right?

i.e. you are not porting it to a lower value property for example?

Correct! ERC shouldn’t apply right?

BizHighflyer

Deleted_User said:

Erc is always included and the mortgage offer that solicitor gets will state that if completing simultaneously then to ignore the erc on the redemption statement.   

You’re spot on - the solicitor has ignored the entire page on the document that states this! Just found it myself. Excellent work, thanks. 

IAMIAM

ERC does happen when you port and completion isn't happening simultaneously. The ERC is then refunded by the lender.