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Re-mortgage costs
warwick2001
Posts: 371 Forumite
Hello all,
Hoping for someone who understands re-mortgaging. porting mortgages etc to help me out here, as I don't trust my solicitor's accounting skills (having already made a mistake on the amount of stamp duty I owe by the tune of £6,900.....)
So, the situation:
I currently owe £64k on my current house (House 1). We are porting this mortgage across to our new house purchase (House 2) to avoid the early re-payment charge of £1500. As well as this £64k original mortgage, we are borrowing an additional £118k on another, new mortgage, so £182 in total.
We are keeping House 1 to rent, so I took out a BTL mortgage of £85k, which was the £64k to cover the original mortgage, plus some extra.
When my solicitor has done our completion statement, she has put the redemption of the current mortgage on House 1 as £65,500 (which appears to me the ported £64k plus the early repayment penalty). As we are porting the original mortgage across, I thought I would avoid this early repayment charge?
So, question is, as I am re-mortgaging the ported mortgage, do I have the early repayment fee to pay, or not?
Many thanks
Hoping for someone who understands re-mortgaging. porting mortgages etc to help me out here, as I don't trust my solicitor's accounting skills (having already made a mistake on the amount of stamp duty I owe by the tune of £6,900.....)
So, the situation:
I currently owe £64k on my current house (House 1). We are porting this mortgage across to our new house purchase (House 2) to avoid the early re-payment charge of £1500. As well as this £64k original mortgage, we are borrowing an additional £118k on another, new mortgage, so £182 in total.
We are keeping House 1 to rent, so I took out a BTL mortgage of £85k, which was the £64k to cover the original mortgage, plus some extra.
When my solicitor has done our completion statement, she has put the redemption of the current mortgage on House 1 as £65,500 (which appears to me the ported £64k plus the early repayment penalty). As we are porting the original mortgage across, I thought I would avoid this early repayment charge?
So, question is, as I am re-mortgaging the ported mortgage, do I have the early repayment fee to pay, or not?
Many thanks
0
Comments
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Ask your solicitor to double check? No one here will have seen your exact mortgage terms1
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Did you discuss the fact you are porting with your solicitor? It's likely the redemption statement has been issued by your lender on a "worst case" basis and assumes you're not necessarily porting, so you (or your solicitor) will need to clarify that with the lender to verify the ERC isn't payable.2
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I had the same thing when i ported my mortgage and borrowed more, the solicitor will draft this up first and then confirms with the mortgage lender. I did however double check that they knew i was porting and that the ERC was not applicable.
Just drop them an email as a reminder.1 -
As above, they can only issue documents based on the redemption statement they receive so best to check with your lender here and get a new redemption statement sent
1 -
Thanks for all the quick responses.
I'll contact my lender and see what's what.0
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