Completion date a month before mortgage term ends

Soozmoney29

Hello!

We are in the process of selling our house - the buyer is in rented accommodation and we have no chain.  Our mortgage term ends at the end of Jan 2025 and we're completing by the end of December - this leaves one month on the mortgage for which we have to pay an early repayment penalty of nearly £4k.  My question is can we request the solicitor / mortgage company to hold the proceeds of the sale and then pay off the mortgage at the end of Jan?

Thank you

Mark_d

So you are selling your house and this is not tied to the purchase of another property?

Typically your mortgage is secured on the house until you sell, i.e. end of December.  If the solicitor does not repay the mortgage in December, what guarantee does the bank have that the mortgage will be repaid?  I would talk to the bank and see what they can do.  given that you're repaying only one month early, I'd expect they are able to work something out.

Soozmoney29

Thank you… will definitely get hold of the back to discuss. 

amnblog

Your buyer will not complete whilst you still have a mortgage secured on the property.

Your options are:

Set the sale for the day after your early repayment charge expires.
Complete before and pay the Early Repayment Charge

Depending on your Lender and your future intentions you may be entitled to a full or partial refund of the Early Repayment Charge if you take a new mortgage on a new property with that current Lender.

New_in_the_fens

Talk to your lender - some allow you to redeem in the last month of a fixed rate period without penalty.