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House Sold...Interest Only Mortgage wirh Santander

124

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  • silvercar
    silvercar Posts: 46,703
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    If you don't sell before the end of the ERC, your interest rate moves to the lender's standard variable rate. It would be worth finding out what that is. You can then decide whether to wait it out or to sell now.

    Though I still maintain it is worth asking S whether they will relax their ERC requirements.

    (Opinions on MSE are just that. I recently had an issue with a savings bond and 3 pages of comments told me I didn't stand a chance. I put in a complaint and the institution capitulated.)
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • You write a good post ...you must be a very rich to think £1800 is a small price to pay.
    Well it's all relative, isn't it. Nothing about buying/selling/owning property is really a 'small price'. But you can't be doing too badly if you're selling a house for twice what you paid for it after 14 years.

    Mustbeananswer?? said:
    In 14 years I have never defaulted on a payment and surely they have had their profit already from the payments I have made??It is a licence to print money for them.I wonder how many little old ladies have been caught with this scam when downsizing???The encouragement to sell before my term completes was to take £1800 out of my sale price in cold blood.it cant be any other way ?? 

    We'll have to agree to disagree. The better deals have the higher ERCs. Flexibility comes at a cost. They will make their money one way or another.

    That said, as silvercar points out, definitely worth appealing to them if you have the time, and good luck. (I mean that sincerely, not sarcastically, in case that's not clear.)

    For what it's worth, I would appeal to them very politely and go down the 'treating customers fairly' route rather than accusing them of cold blood and scamming. They may be reasonable. But even if they're not, in the current climate, delaying putting your house on the market may have cost you even more in the long run, so don't feel too bad.



  • frugalmacdugal
    frugalmacdugal Posts: 10,077
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    edited 20 August 2023 at 2:04PM
    Hi,
    you could ask the buyer to wait, if yes, all well, if buyer wants house as soon as possible, then explain £1800 surcharge.
    If buyer says no and pulls out, you wait a few weeks then put house back on market, though chances are takes ages to sell or house prices drop.
    Better a
    The meaning of A bird in the hand is worth two in the bush

  • tooldle
    tooldle Posts: 1,462
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    Have you reached the end of a ‘deal’ or has the mortgage run its course and capital repayment is now necessary?
  • user1977
    user1977 Posts: 13,245
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    tooldle said:
    Have you reached the end of a ‘deal’ or has the mortgage run its course and capital repayment is now necessary?
    From piecing together the OP's other threads, there's a deal which ends in November 2023, but the mortgage term itself isn't due to end until September 2024.
  • silvercar
    silvercar Posts: 46,703
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    user1977 said:
    tooldle said:
    Have you reached the end of a ‘deal’ or has the mortgage run its course and capital repayment is now necessary?
    From piecing together the OP's other threads, there's a deal which ends in November 2023, but the mortgage term itself isn't due to end until September 2024.
    In which case Santander shouldn't have told OP that he should have the property on the market. One thing reminding someone of the end date of their mortgage, completely different if it is only their deal that is ending and the actual mortgage still has over a year to run.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • user1977
    user1977 Posts: 13,245
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    silvercar said:
    user1977 said:
    tooldle said:
    Have you reached the end of a ‘deal’ or has the mortgage run its course and capital repayment is now necessary?
    From piecing together the OP's other threads, there's a deal which ends in November 2023, but the mortgage term itself isn't due to end until September 2024.
    In which case Santander shouldn't have told OP that he should have the property on the market. One thing reminding someone of the end date of their mortgage, completely different if it is only their deal that is ending and the actual mortgage still has over a year to run.
    I think it's going to depend on exactly what the conversation was - "sell your property" is a reasonable answer to "how am I going to find the capital to repay the mortgage by the end of the term". I doubt the bank advised him he should try to repay it at least 10 months before the end of the term.
  • CSI_Yorkshire
    CSI_Yorkshire Posts: 1,792
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    silvercar said:
    user1977 said:
    tooldle said:
    Have you reached the end of a ‘deal’ or has the mortgage run its course and capital repayment is now necessary?
    From piecing together the OP's other threads, there's a deal which ends in November 2023, but the mortgage term itself isn't due to end until September 2024.
    In which case Santander shouldn't have told OP that he should have the property on the market. One thing reminding someone of the end date of their mortgage, completely different if it is only their deal that is ending and the actual mortgage still has over a year to run.
    We still don't know that they did, or why.  All we have been told is "I rang the Santander Helpline 4 months ago to tell them where I stood. They encouraged me to get the house on the Market asap", followed by a proforma letter stating the obvious that if you plan to pay off a mortgage by sale of the property then you actually need to sell it.

    We don't know what the OP said to the helpline or what the reply was.
  • kingstreet
    kingstreet Posts: 38,593
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    Could you kindly confirm;-

    the date your mortgage expires and has to be repaid
    the date your current mortgage product (fix/tracker etc) expires
    the date you were permitted a new product.

    IME it is very rare for a lender to permit a new product which will expire after the mortgage is due to be repaid. For example, if the mortgage is up in two years, I would not expect a three year fix to be permitted.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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