Early repayment fee workaround - is this possible?

saint_david

My mortgage initial 2 year fixed rate period ends in August, but theres a slim chance i might have sold my property before this. If i do, im liable to pay my mortgage company (the woolich) a 3% early repayment fee which is undesirable to say the least.

If it sells i'll be moving in with my partner in her own property. Would i therefore be able to keep the money paid for my house in my account until august and pay it back then instead, thus avoiding the early repayment fee? Or will the woolich want it back immediately once the property has sold? Obviously it technically means id still be paying the mortage loan repayments for a few months even after i no longer live at the property. At what point do you inform your mortgage company that you've sold your house if you dont NEED to pay back the loan immediately?

Hope this makes sense!

utterbar

You'll have to pay it off on completion. The buyer will want to take the property free of the Woolwich's charge which won't happen unless the mortgage is redeemed.

saint_david

oh well thanks for the quick reply though

pollyanna24

Yes, the amount has to be paid immediately as you could do a runner with that money and the bank would no recourse to get their money back, i.e. they can't repossess the house as you have already sold it.