House Sold...Interest Only Mortgage wirh Santander

Mustbeananswer??

Hi

It was all going so well.Sold house for double what I bought it for (14 years ago).The IO deal matures in November.I will of course have the money to settle but my Settlement Figure contains £1800 Early Repayment Charge??I'm only 3 months away from the deadline.I would have thought the ERC was calculated on a decreasing scale over time.Is there any advice anyone has please...they have been badgering me to pay early ??

born_again

Mortgage is secured on the property. As you no longer have the property. I'm surprised that the solicitor has allowed this to happen.

Mustbeananswer??

born_again said:

Mortgage is secured on the property. As you no longer have the property. I'm surprised that the solicitor has allowed this to happen.

Hi....when I said Sold it is in the final stages ...I was looking ahead.We are heading for exchange contracts ...I suppose I could try and hold my buyer off till November where there is no ERC.....but stand the risk of losing him....I am well out of my depth here born again??

CSI_Yorkshire

That is a completely normal erc

Mstty

I wouldn't delay the buyer for the sake of £1800

Quite normal for Early Repayment Charges to just say year 1 / year 2 etc. So 3 months left is stil year 2 on the charge scale.

Zoe02

Depends on lender but think there might be a way to port if buying another property. 

Could have been more or timed it to be at the same time.

gazfocus

You risk losing your buyer if you want them to wait til November. Are they FTB’s?

The ERC on our mortgage is around £4,900 but our fixed rate isn’t up til 2027 so we will just have to suck it up if we want to sell. 

Ksw3

What we're the terms of your mortgage? As I understand it, some will br sliding, others fixed for duration  and some set put year by year. 

Edi81

You’ve sold the house for double what you paid and you’re quibbling over £1800! First world problems indeed!

Mstty

Given your other thread OP, I do wonder if you need the £1800 for the incoming leasehold bills.

https://forums.moneysavingexpert.com/discussion/6456865/am-i-crazy-bought-a-flat-knowing-floors-above-it-have-cladding#latest

Mustbeananswer??

Mstty said:

Given your other thread OP, I do wonder if you need the £1800 for the incoming leasehold bills.

https://forums.moneysavingexpert.com/discussion/6456865/am-i-crazy-bought-a-flat-knowing-floors-above-it-have-cladding#latest

Nope....I just am hurting that I didnt realise there is a ERC on the Mortgage.There is no mention of any outlay on the cladding issue as yet.I think I will be free from any payments but will research when I get settled in.However thanks for your concern xx