Moving before fixed-rate mortgage ends

Help1234

Hello, it looks like I may complete on selling my house 13 days before my fixed-rate mortgage ends. Will I be liable for large costs despite leaving so close to the date? It's West Brom

Snookie12cat

Help1234 said:

Hello, it looks like I may complete on selling my house 13 days before my fixed-rate mortgage ends. Will I be liable for large costs despite leaving so close to the date? It's West Brom

Yes, if you complete before the end of the fixed term you will get charge the entire early repayment charge for the year. Best to move completion 2 weeks.
I am selling my rental now and we are exchanging soon to complete the 1st March to avoid the ERC of £1500. 

london21

Might be worth waiting for the 13 days or call  West Brom to see if there would be any charges been only a few days. 

Help1234

Just called the bank and they confirmed the charge would be £1300. Can you advise would this charge only be applicable on completion? Do I need to exchange after the 13 days or can I exchange before and exchange after the 13 days?

dimbo61

Why not speak to your solicitors and buyers ?

Help1234

I will do I just need to clarify does the charge apply if we exchange before the fixed rate ends or is it only completion. The bank said its when it is redeemed.

Help1234

Does anyone know if I will need to exchange after the fixed-rate ends? I am not clear because if I exchange a week or two before the fixed-rate ends then my solicitors will need to request a redemption statement and this will include the charge as they will be requesting it before the fixed rate ends. But then if I complete after I shouldn't have to pay it? @london21 @Snookie12cat

980233

Help1234 said:

Hello, it looks like I may complete on selling my house 13 days before my fixed-rate mortgage ends. Will I be liable for large costs despite leaving so close to the date? It's West Brom

Ouch

Have you exchanged if not I would try to avoid the ERC by going past the 13 days.

My fixed rate was up at the end of July and I stayed on the SVR to avoid renewing and the massive ERC for completion next week,

Snookie12cat

Help1234 said:

Just called the bank and they confirmed the charge would be £1300. Can you advise would this charge only be applicable on completion? Do I need to exchange after the 13 days or can I exchange before and exchange after the 13 days?

Its only applicable on completion. My solicitor says you can exchange anytime but as long as completion is after the ERC date then you wont get charged.

Help1234

Thank you!

Help1234

I have neither exchanged nor completed yet.