Avoiding early repayment charge

cazbing

Hi, I'm selling my house, the buyers are proceeding with survey etc. My mortgage has a £1300 ERC which ceases to apply on 01/05/08. If everything else goes smoothly (fingers crossed!) I don't particularly want to delay completion until then as we could do with the cash earlier to pay for our wedding in June. Is it possible to complete earlier, pay off the bulk of the mortgage, and leave only a small amount in to avoid paying the ERC? My mum was apparently told this was an option when she bought last year. Or could we complete the sale but hold off repaying the mortgage until after that date, as one extra mortgage payment is cheaper than the ERC!?

Thanks for any advice.;)

dmg24

The mortgage is secured on the property. Once the property is sold, the mortgage must be cleared.

dunstonh

Is it possible to complete earlier, pay off the bulk of the mortgage, and leave only a small amount in to avoid paying the ERC?

No.

My mum was apparently told this was an option when she bought last year.

Not with an ERC. It can apply with the closing fee where you leave a few pounds in to keep it open and avoid a £250 fee (or whatever) but not the ERC.

Dick_here

Delay completion until after 01/05. Pay for the wedding by credit card in the meantime.