Early Repayment Charges

magall02

I am a first time user of this site so forgive me if this question has been asked before. I am currently in the process of moving house, my mortgage is with N.R . they have advised I should actually move lender as they are not offering any new deals and are not competitive however if i move i'll have to pay a hefty ERC and MEAF can anyone tell me if they can actually enforce this given they are telling me to move lender. It seems pretty unfair as I would be happy to stay with them if they were more competitive? If I stay my mortagage will be 300 pounds more per month compared to other quotes weve had. I feel they are tying my hands

dunstonh

can anyone tell me if they can actually enforce this given they are telling me to move lender.

Yes they can. They are telling you to move after your deal tie in is up. If you choose to move beforehand then you should pay back the money.

t seems pretty unfair as I would be happy to stay with them if they were more competitive?

Its not unfair. You chose a special deal and if you wait until the tie in is gone they wont charge you. If you hadnt gone with a special deal you would have no tie in and no ERC.

If I stay my mortagage will be 300 pounds more per month compared to other quotes weve had.

So, you need to decide if the cost of paying the ERC is worth it over the period of the new deal you are looking at.

I feel they are tying my hands

No. You knew the terms when you entered into the mortgage so its a bit off to be complaining about them now. There was never any guarantee that another deal would be available to you again after the tie in period was up. However, you are free to move without penalty when the tie in is up. If you chose to move beforehand then it is your choice. If you choose to take a deal with a tie in or especially a deal with a tie in that lasts longer than the special terms then you are taking a risk and sometimes the risk will pay off and sometimes it wont. It appears it hasnt paid off for you at the moment but then we dont know how you benefited from the deal you entered into in the first place.

re90518

hi all,
I wander if somebody had the same experience:

On the 20th May 2008 we have repaid in full our mortgage with Britannia, after our fixed 5 years term expired.

Our product summary statement, clearly indicate as Date ERC Expires as 20 May 2008, so in agreement to this and with the clear instructions given by phone to my wife from two of Britannia Customer Service people we have proceed to pay with a CHAPS-Same Day Transfer on the 20 May 08.

Having checked the final figure (they quoted me over the phone) after payment (stupid me!!! :mad: ) we have noticed that we have been charged the Early Repayment Charges. Today I have phone Britannia Customer Service for clarifications, and in effects they confirmed me that we have been charged the ERC fee, with the reason that 20th of May was the last day of contract and we should have paid on the 21st, charging me 2500 pounds for 1 day...if they are right...

By definition, an Expiration Day is the Date on which an agreement, appropriation, contract, facility, offer, right, etc., ceases to be effective or operative; therefore, in my opinion we were in our right to pay on the 20th and we should not have incurred in any Early Payment Charges in doing so.

can anyone tell me if I am right?