Mortgage early repayment

mills112

My friend has a Santander 5 year fixed rate mortgage from the attached deal. It is coming to an end in January next year and he is going to pay it off.

The attached document states that there is 5% early repayment charge. Is that for early repayment within the 5 year fixed deal, or is it for early payment of the mortgage?

I am thinking it is repayment within the 5 years fixed deal but if he pays the mortgage off when that deal ends then the 5% won't apply?

GrumpyDil

The ERCs always end when the fix has expired so no if he settles the outstanding balance after the fix has expired he won't need to pay any ERC.

penners324

Only within the fixed period

BikingBud

I am just coming up to the end of a good deal and intend to pay off.

If they look at the app today it will give a settlement figure out to 12 Oct that will include the ERC. It advises what the balance and ERC will be and also that the ERC will not apply after a certain date,

Once they get within 28 days of that deal end date, than look on the app for the settlement figure for the day after the deal. The ERC will not apply to that settlement figure.

There might be a £225 Mortgage Account Fee to pay on closure of the mortgage.

mills112

https://forums.moneysavingexpert.com/discussion/comment/82136643#Comment_82136643

thanks. do these settlement figures appear on the online website of your account? We were looking at the online log in and I don't remember seeing the settlement figures. so perhaps only on the app?

BikingBud

I generally only use the app but looking on line:

Then:

And:

mills112

https://forums.moneysavingexpert.com/discussion/comment/82137831#Comment_82137831

thank you, that is really helpful. my friend called the bank and they said to call back 28 days before the deal ends and they will be able to tell him the charges for paying the mortgage off. with your advice, he can do it on the app and doesn't need to call the bank.