We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Mortgage Early Repayment Charge
Options
last_mile
Posts: 96 Forumite
Hi All,
I just wanted to ask if anyone knows the answer to the below:
"Is the early repayment charge calculated from application or commencement?"
i.e. if my current deal expires on the 31st of December, and you don't have to pay the ERC if you're within 6 months of that date.
but I plan to move so need more mortgage.
Does the ERC count from the moment I start my application or is it counted from the date the new mortgage starts?
So if I made my move date after June 30th, no ERC?
I just wanted to ask if anyone knows the answer to the below:
"Is the early repayment charge calculated from application or commencement?"
i.e. if my current deal expires on the 31st of December, and you don't have to pay the ERC if you're within 6 months of that date.
but I plan to move so need more mortgage.
Does the ERC count from the moment I start my application or is it counted from the date the new mortgage starts?
So if I made my move date after June 30th, no ERC?
0
Comments
-
No ERC usually applies only to a new mortgage with the same lender. Is that the case?
If so, the completion date will be used - the point the new mortgage commences.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.1 -
Yes my plan is to take the new mortgage with my current lender in the hopes of avoiding the ERC.kingstreet said:No ERC usually applies only to a new mortgage with the same lender. Is that the case?
If so, the completion date will be used - the point the new mortgage commences.
It would be perfect if it was commencement as that would put an 8 week buying process ending within the 6 month window.0 -
as KS says
I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards