Can I avoid early repayment charge if I take out a new loan with same lender?

sherbert1964

Hi all

I have a loan with TML and a hefty ERC which doesnt expire until 2028.

I am looking to buy a new house and cannot port my mortgage unfortunately however I could take a new loan out for higher amount with the same lender (TML)

Is there any way I can get my existing lender to agree to waive the ERC if we take out a higher loan with them?

Mark_d

The new lender might be able to offer you some cashback on your new mortgage but there'e no way they can waive TML's ERC

sherbert1964

Mark_d said:

The new lender might be able to offer you some cashback on your new mortgage but there'e no way they can waive TML's ERC

I don't mean a new lender, I mean the same lender

born_again

sherbert1964 said:

Mark_d said:

The new lender might be able to offer you some cashback on your new mortgage but there'e no way they can waive TML's ERC

I don't mean a new lender, I mean the same lender

Best way to find out is to contact them. As different lenders may have different policies.

Hoenir

Why won't TML allow you to port? 

sherbert1964

@born_again ok thanks I will contact them

@Hoenir Mortgage offer says the loan is non-transferable, I've asked them and they've flatly said no. I'd love to port and get a small further advance that would be ideal scenario. Any thoughts/ideas to get them to enable the port?

Hoenir

In that case the answer is no. Likely to be a result of the manner that they've funded the mortgage. TML being on the hook for penalties as well.