We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Early Repayment Charge
davidt598
Posts: 1 Newbie
Hello all,
I thought I was being clever back in 2018 when I fixed my mortgage for 10 years but now that I am selling my flat before buying I am faced with an early repayment charge (ERC) of over £9k.
The mortgage is with TSB and after speaking with them I have found out that I have three months post sale to port the mortgage and be refunded the £9k, meaning I have to complete on a house in that time to avoid the charge.
The reason for selling before buying is to be in an advantageous position when it comes to making an offer on a property and to have a better understanding of our buying position. The market in Edinburgh for 3/4 bed houses in the area we are looking is a seller's market and they prefer buyers chain free.
My wife also owns a flat that we would prefer not to sell but will do if affordability requires us to do.
Does anyone know of alternative ways to avoid the ERC?
We had thought of moving the mortgage to my wife's flat but that doesn't sound feasible according to our broker.
Thanks!
I thought I was being clever back in 2018 when I fixed my mortgage for 10 years but now that I am selling my flat before buying I am faced with an early repayment charge (ERC) of over £9k.
The mortgage is with TSB and after speaking with them I have found out that I have three months post sale to port the mortgage and be refunded the £9k, meaning I have to complete on a house in that time to avoid the charge.
The reason for selling before buying is to be in an advantageous position when it comes to making an offer on a property and to have a better understanding of our buying position. The market in Edinburgh for 3/4 bed houses in the area we are looking is a seller's market and they prefer buyers chain free.
My wife also owns a flat that we would prefer not to sell but will do if affordability requires us to do.
Does anyone know of alternative ways to avoid the ERC?
We had thought of moving the mortgage to my wife's flat but that doesn't sound feasible according to our broker.
Thanks!
0
Comments
-
Usually when porting, it has to be to at the same time as buying the property. Transferring it to an existing property is not usually possible.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.8K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.4K Mortgages, Homes & Bills
- 178.2K Life & Family
- 260.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards