Gap between old fixed rate and new fixed rate - one off payment.

Blueberg

I recently remortgaged with the same lender. My old fixed rate ends on the 30th of June and the new remortgage fixed rate begins on the 7th of July. I will be on a SVR during that week.

The reason I did this was so I could pay off a lump sum one off payment without attracting early repayment charges. I explained to the mortgage advisor why I was doing this and she said that would be OK.

However, I then got a letter saying that if I made a one off payment before 30th of June it would go on that balance but if I paid it after the 30th of June it would go on the new mortgage balance.

I rang up and explained why I had a gap between fixed mortgages and what I was planning to do and told them about the letter.

The woman I spoke to said she could see it was already on my notes and she could also see the letter and she wasn't sure what it meant (it is ambiguous, it doesn't mention ERC's).

But since the letter I have been worried they can charge me ERC's as I am with the same lender and I have already arranged the remortgage (albeit with a gap)

My worry is if I do make a payment in the gap and it does attract ERC's I would pay 2.5% of the mortgage as opposed to 1.5% on my current deal to add insult to injury and that is what the letter was getting at.

My question is, has anyone reading this done this before (put in a gap between fixed rate mortgages). Is it normal pay a lump sum without during this period without attracting EPC's?

I can't get my head round the fact I could still be liable for early repayment charges but the letter has me wondering if there is some clause that neither the mortgage advisor or customer service rep knows about.

Any help/advice appreciated.

 

K_S

@blueberg I can't speak for.your particular case, but generally speaking, if a borrower is on the lender's SVR on 1st July, any overpayments made on that date should be penalty free.

Blueberg said:

I recently remortgaged with the same lender. My old fixed rate ends on the 30th of June and the new remortgage fixed rate begins on the 7th of July. I will be on a SVR during that week.

The reason I did this was so I could pay off a lump sum one off payment without attracting early repayment charges. I explained to the mortgage advisor why I was doing this and she said that would be OK.

However, I then got a letter saying that if I made a one off payment before 30th of June it would go on that balance but if I paid it after the 30th of June it would go on the new mortgage balance.

I rang up and explained why I had a gap between fixed mortgages and what I was planning to do and told them about the letter.

The woman I spoke to said she could see it was already on my notes and she could also see the letter and she wasn't sure what it meant (it is ambiguous, it doesn't mention ERC's).

But since the letter I have been worried they can charge me ERC's as I am with the same lender and I have already arranged the remortgage (albeit with a gap)

My worry is if I do make a payment in the gap and it does attract ERC's I would pay 2.5% of the mortgage as opposed to 1.5% on my current deal to add insult to injury and that is what the letter was getting at.

My question is, has anyone reading this done this before (put in a gap between fixed rate mortgages). Is it normal pay a lump sum without during this period without attracting EPC's?

I can't get my head round the fact I could still be liable for early repayment charges but the letter has me wondering if there is some clause that neither the mortgage advisor or customer service rep knows about.

Any help/advice appreciated.

Blueberg

Thank you. It is with Yorkshire Building Society and the advisor I spoke to was with YBS. I had to speak to them rather you just doing it online because I wanted a gap. It was just the subsequent letter that threw me.