Avoiding ERC

tealcr

Greetings everyone,

My current fixed deal with Halifax ends on the 31st of January 2023 and I have received an offer from Lloyds which is valid until the 28th of February 2023.
In order to avoid the ERC charge which ends on the 31st of January, when should I officially accept the offer from Lloyds? After 31st of January, or could I accept the offer earlier and ask to complete the remortgage on the 1st of February?

If anybody has any insight I would be extremely grateful. 

user1977

It's the completion date which matters - the ERC is payable if you redeem the old mortgage early - it's got nothing to do with "accepting" the new mortgage (if that's even a formal step you need to take with Lloyds - often there is no "acceptance", other than you completing the remortgage).

K_S

@tealcr All you do is (through the solicitor) set a completion date that is on the next working day after 31 Jan, so 1 Feb.

The only thing you usually need to do to 'accept' the offer is for the solicitor to complete the conveyancing (which among other things will involve you sending across a signed document to Optima or whoever the solicitor is) and then request the lender to release funds for completion.

tealcr said:

Greetings everyone,

My current fixed deal with Halifax ends on the 31st of January 2023 and I have received an offer from Lloyds which is valid until the 28th of February 2023.
In order to avoid the ERC charge which ends on the 31st of January, when should I officially accept the offer from Lloyds? After 31st of January, or could I accept the offer earlier and ask to complete the remortgage on the 1st of February?

If anybody has any insight I would be extremely grateful.