Early Mortgage repayment fee

Smudger74

Hello,
I would appreciate some advice on an early repayment charge we have been quoted. All being well, we are moving home in a couple of months.  We have our new mortgage in place, all parties' surveys are completed and we are near to exchanging contracts (I won't believe it until it happens, though).

My current mortgage term ends on the 31st October, however, I pay my mortgage on the first of each month so my final mortgage payment would, in theory, be the 1st of October. We thought we could plan the move for just before or over half-term. However, TSB are saying that we would incur an early repayment fee of £1250 if we repaid the mortgage before the 31st. Excuse my ignorance, but if I am up to date with my payments, I am not entirely sure how TSB are losing out to warrant the I would incur an early repayment fee.

Imagining we have our pick of moving dates (half term would be very convenient), is our only choice to avoid the early repayment fee, to wait until the 31st October (with a payment due on the 1st November with the new variable rate)  or do you think we would be able to negotiate moving a week or two earlier without the fee?

AnnieB2018

Sorry you can’t negotiate ERC, the date is set in stone and the bank has already told you they won’t waive it. It is just one of those things x

Edi81

There was a post a few days ago by a broker explaining what ERCs are any why they are valid. 

penners324

Your mortgage term ends on 31st October. Complete on 1st November to avoid the ERC.

kingstreet

https://forums.moneysavingexpert.com/discussion/6383474/erc-unlawful-penalty#latest

Smudger74

Can I change the mortgage payment date to avoid paying the full amount for November at the increased variable rate?