Selling house and paying early redemption charge

alan44

marc5180 wrote: »

Phoned Northern Rock who explained that we would have to pay an early repayment fee of £2800 plus a help with cost fee of £1000 and a discharge fee of 250 pounds so all in all over £4000.
Whowantstoberich - we have thought about renting but thought that we would have to change our mortgage to a buy to let, then theres the landlords insurances and i imagine a lot of hassle and don't really want to go down that route but then again we dont want to stay in the house for another 2 years, so we dont know what to do now

Have you looked at what similar properties are renting for on rightmove (tick 'show let agreed'). If the rent won't cover your mortgage then that might help make up your mind for you).

Generali

What's wrong with the place that makes it unsuitable for the next couple of years? Perhaps someone has some advice that could help.

Gorgeous_George

Perhaps forecasts of 10% falls this year and next are frightening the OP.

Renting or staying put are unattractive options if the bears are proven correct. Sell and lock in any gains while shielding yourself from potential losses. If, in 2 years' time the OP is in negative equity, his options may be somewhat restricted (stay put on SVR or realise the losses).

If the bears are wrong, the OP will regret selling.

GG

Generali

Gorgeous_George wrote: »

Perhaps forecasts of 10% falls this year and next are frightening the OP.

Renting or staying put are unattractive options if the bears are proven correct. Sell and lock in any gains while shielding yourself from potential losses. If, in 2 years' time the OP is in negative equity, his options may be somewhat restricted (stay put on SVR or realise the losses).

If the bears are wrong, the OP will regret selling.

GG

It's very expensive buying and selling houses - the extra costs mean you have to be very right before it becomes worthwhile given the hassle involved.

Gorgeous_George

Generali wrote: »

It's very expensive buying and selling houses - the extra costs mean you have to be very right before it becomes worthwhile given the hassle involved.

I agree but, if prices fall by 20% the OP may find himself stuck in a property that he cannot sell on a mortgage that he cannot afford.

I witnessed negative equity in the 90's and some people really suffered. A crash today will bring unimaginable pain for anyone with little if any equity. I have 75% equity in my home so have no need to panic. The OP may be wise to sell up before the fan is hit by 'it'.

GG

marc5180

Generali wrote: »

What's wrong with the place that makes it unsuitable for the next couple of years? Perhaps someone has some advice that could help.

The house is far too small now and we are looking for a change of scenery, We had set our mind on moving now so another 2 years would be the last thing we want to do. I also do beleive that the market will reverse over the next few years although this isnt the determining factor of us selling up...it is a concern.

Gorgeous George.....what does OP mean???? other person

Gorgeous_George

OP = Original post or poster



GG

twhurl

My sale has to go through 3 days before my early repayment charge expires.
Does anyone think I could get my bank to waive the charge 3 days early ??
Thanks !

Gorgeous_George

twhurl

Delay the completion date by three days and avoid the hassle.

Maybe your solicitor could redeem your mortgage 3 days after completion but I don't know. Obviously, the loan will not be secured on the property for the three days but if the money is held by the solicitor and the mortgager agrees, it may be possible (but unlikely).

GG

dmg24

Gorgeous_George wrote: »

twhurl

Delay the completion date by three days and avoid the hassle.

Maybe your solicitor could redeem your mortgage 3 days after completion but I don't know. Obviously, the loan will not be secured on the property for the three days but if the money is held by the solicitor and the mortgager agrees, it may be possible (but unlikely).

GG

I agree it is unlikely, as the mortgage would be unsecured (and the bank are happy to receive the ERC!).

Could I ask why you have to complete three days before? x