ERC seems low

hufc2002

Hi all

2 year fix @1.84% with HSBC comes to an end with HSBC 30/09/2022.

2 year fix mortgage offer @2.10% with Virgin ends 28/09/2022.

Solicitor has asked if I want to complete 01/09/2022 however doing so I would incur an ERC of £113.34.  This seems low to me but could it be correct?  I have copy of the redemption statement issued by HSBC.

If this was you with no guarantee of Virgin extending the mortgage offer by just a few days, would you complete before my current fix ends.

Owe just over £159k.  Property value £230k.

Thanks in advance. 

ACG

That £113, is that an ERC or is that a deeds release fee? 

I dont know if this is possible, but most solicitors draw down on the money a couple of days before completion to ensure the money is in hand in advance. 1-2 days is not uncommon. 

Could your solicitor not draw down on the money with virgin on the 28th and then complete on the 30th? When I bought my house, my solicitor had the money in their bank account on the wednesday, we completed on Friday. 

K_S

hufc2002 said:

Hi all

2 year fix @1.84% with HSBC comes to an end with HSBC 30/09/2022.

2 year fix mortgage offer @2.10% with Virgin ends 28/09/2022.

Solicitor has asked if I want to complete 01/09/2022 however doing so I would incur an ERC of £113.34.  This seems low to me but could it be correct?  I have copy of the redemption statement issued by HSBC.

If this was you with no guarantee of Virgin extending the mortgage offer by just a few days, would you complete before my current fix ends.

Owe just over £159k.  Property value £230k.

Thanks in advance. 

@hufc2002 HSBC does a pro-rated ERC, so you'll only be paying for the 30 days (so roughly 1% x 30 / 365 x 159k) between completion and end of fix. This is the excerpt from a typical HSBC offer.

hufc2002

So is the ERC quoted on the redemption statement correct?  I was expecting it to be hundreds even thousands.