Chances of Santander waiving Early Redemption Charge with 1 week left?

sarahmurphymoo

Hi all.

I have a 5 year fixed rate with Santander that expires on 2nd Jan 2023. I'm looking to purchase a new build and the builders are obviously keen to complete by 31st December 2022.

What are the chances that Santander might be kind an waive the ERC if i were to redeem the mortgage literally a few days before it technically expires?

Key dates:
Last mortgage payment in the fixed term is 21st December 2022
Builders would want to complete on 23rd December 2022
Fixed rate ends 2nd Jan 2023

I've rang the call centre who advised to write them a letter to consider and respond (which i have done - just waiting a reply). I'm considering porting the mortgage with them, but the rates they offer are about 0.75% more than what seems to be available from other lenders at the moment.

Anyone had any luck?

Ibits4321

I would have thought the chances were excellent. There have been upteen threads on this and the concensus is you can lock in a new rate from around three months before your fixed rate ends.

sarahmurphymoo

Ibits4321 said:

I would have thought the chances were excellent. There have been upteen threads on this and the concensus is you can lock in a new rate from around three months before your fixed rate ends.

Tha ks, I agree when you take out a mortgage with the same lender... But what about when you move to a new one? I. E. Santander to Natwest

Edi81

If you are moving lender then no way. The ERC is due up to the last day. 

sarahmurphymoo

Edi81 said:

If you are moving lender then no way. The ERC is due up to the last day. 

Thanks, that is very frustrating as I was hoping to find a sweetpsot with only 1 week to go. I'll hold a little bit of hope that they might come back with something positive.

My only other option is to negotiate (or engineer) a completion date of 3td Jan or after... But I feel like I'm risking things a bit with that

Neilos9

Why would you want to move in 2 days before Christmas, and pay a redemption penalty - be shocked if builder puts house back on the market at a time like this....

sarahmurphymoo

Neilos9 said:

Why would you want to move in 2 days before Christmas, and pay a redemption penalty - be shocked if builder puts house back on the market at a time like this....

The house has just fallen through with the previous buyers so has come back on the market this week, so we haven't offered on it yet.

They've given us a good deal for a part exchange and we've negotiated the price of flooring to offset the redemption costs (as I'd mentioned this to them). They would complete next year but they will withdraw they flooring incentives

What I'm hoping to do is take advantage of their offer, and something with a better mortgage deal. 

I just wish santander has more comparable rates with natwest etc as then this would just be a case of porting the mortgage, but I can save around £150 a month if I move lenders

GrumpyDil

Neilos9 said:

Why would you want to move in 2 days before Christmas, and pay a redemption penalty - be shocked if builder puts house back on the market at a time like this....

Don't rely on that. We had exactly this situation a few years ago where the builder was pushing us to exchange and complete about three days before Christmas. For various reasons we were unwilling to do so and house was put back on market.

Simply put they may have a specific target to sell the house before year end and if not be happy to remarket it.

Times are different know but the main driving point in our case was a sakes manager with a target he missed.