Avoid ERC

Newheight13

Hi,
My last mortgage payment for my 2 year fixed is on the 01/08/23 - is it possible to remortgage now and pay the last 2 months payments on the 02/06, so technically they are getting all their payments and means I can avoid ERC? Or, I’ve read some banks will give you a month or 2 months grace and they would happily let you remortgage at 22 months with another lender but unsure which banks allow this? 

Thanks 

K_S

@newheight13

If you’re talking about a ‘remortgage’ (changing to a new lender) - you can apply for a mortgage now (which secures the rate), the offer will be valid for around 6 months (with most lenders) and then complete on 01 Sep (assuming that your fix ends on 31 August).

If you’re talking about a product-transfer/product-switch/rate-switch (staying with the same lender) - most lenders will allow you to reserve a rate 3-6 months in advance (which should take you beyond the ERC period) and some will allow the new product to kick in up to 3 months early and waive the ERC. 

In either of the above cases, what you’ve said - paying in advance - will not make any difference to how the ERC is applied, I hope that makes sense.

Newheight13 said:

Hi,
My last mortgage payment for my 2 year fixed is on the 01/08/23 - is it possible to remortgage now and pay the last 2 months payments on the 02/06, so technically they are getting all their payments and means I can avoid ERC? Or, I’ve read some banks will give you a month or 2 months grace and they would happily let you remortgage at 22 months with another lender but unsure which banks allow this? 

Thanks 

Newheight13

Thank you. What I mean is can I remortgage now, 2 months early if I pay my last 2 payments due upfront? Thanks!

Newheight13

And avoid the ERC

Neilos9

no you cant