ERC with break in port

goodwithsaving

Hello. I had to pay an ERC because although porting, the sale and purchase were not simultaneous. Both exchanged at the same time, but completions were different. I get this back from my lender (Nationwide) because I will be completing on the same property the mortgage was agreed on, and continuing to port.
Does anybody know if I have to request the refund of ERCs, or if this will be automatic say, 28 days afterwards?
Thank you

george4064

It should be automatic, as when you complete your purchase your original mortgage that you temporarily redeemed will be re-instated.

No harm in double checking with your lender, things like how soon after completion (of purchase) will ERC be refunded? And to which bank account?

goodwithsaving

Thank you. I will check but that's reassuring.

kingstreet

Nationwide criteria;-

"We expect the sale and purchase transactions to complete simultaneously. However, we understand if there are delays in the completion of the purchase, then the situation is out of your client’s control. If your client has to unexpectedly redeem their existing mortgage prior to completion of their new mortgage, we will:

• continue to process your client’s application if a mortgage offer has already been produced. The new property purchase must then complete within the offer validity period.
OR
• if a mortgage offer hasn’t yet been produced but redemption of the existing mortgage has taken place, your client will have up to 180 days from the redemption date to reach completion. A paper application will be required in these cases. You can talk to our experienced Technical Support Advisers using Broker Chat for further information.

Following the completion of the new mortgage, any ERCs which are due to be returned will be refunded to the solicitor(s) who redeemed the original mortgage."