Early repayment charge stand off

Bash123 · 5 May 2018 at 3:17PM

First post on here so apologies if in the wrong place, but any help is greatly appreciated.
Had an offer accepted on a house Feb in the knowledge that my mortgage ended 1/6/18 so far away that I was prepared to pay the erc of 3,700.
Due to delays with my buyer we are now ready to exchange with my seller insistent on completing18/5. Leaving two weeks before my mortgage deals ends thus incurring the early repayment charge.
My mortgage is 2 years fixed but the deal in for 27 months, it was carried out by my broker. The only information I have at all regarding the deal is the kfi sent to me before agreeing to the mortgage. I have never received a contract not from my broker nor my mortgage provider, I only signed a declaration form and scanned it back to my broker. I have complete trust in my broker but find it extremely weird that I was never sent a contract or any documentation from my provider directly.
I have changed the amounts I pay on my mortgage on 3 separate occasions over the last 2 years and requested my contract each time, and I have only been sent confirmation of the change in amounts and no contract.
I have contacted the financial ombudsman regarding this case due to fact that I have to pay 3,700 redemption fee 12 days before the mortgage ends and the fact that I have no contract from them. It is currently being investigated.
I understand asking my seller to wait would solve all this and I have already asked this but just asking if there is another way around it.
Anyone who can offer any advice, knowledge or has gone through this before and got a result it is greatly appreciated. Thanks

dunstonh · 5 May 2018 at 5:58PM

My mortgage is 2 years fixed but the deal in for 27 months, it was carried out by my broker. The only information I have at all regarding the deal is the kfi sent to me before agreeing to the mortgage.

Fixed rates are always to a specific date rather than a time period. So, there is no such thing as a two year fixed rate from a technical point of view. However, they are allowed to be marketed to the nearest period. So, when a new fixed rate deal is launched, the early borrowers will get 2 years and x number of months and late borrowers will get 1 year and x number of months.

The contract/offer letter and KFI always states the date you are tied to.

I have never received a contract not from my broker nor my mortgage provider, I only signed a declaration form and scanned it back to my broker.

You would have signed it and returned it to the lender.

I have complete trust in my broker but find it extremely weird that I was never sent a contract or any documentation from my provider directly.

The broker gets the pdf and prints it and gives it to you. You sign the contract which either goes back to the broker or to the lender directly.

I have changed the amounts I pay on my mortgage on 3 separate occasions over the last 2 years and requested my contract each time, and I have only been sent confirmation of the change in amounts and no contract.

Overpayments are not a contract event.

I have contacted the financial ombudsman regarding this case due to fact that I have to pay 3,700 redemption fee 12 days before the mortgage ends and the fact that I have no contract from them. It is currently being investigated.

Why do you think you dont have a contract?
Have you complained to the firm first? The FOS cannot investigate a complaint until the firm has had at least 8 weeks to consider your complaint and give a response.

Anyone who can offer any advice, knowledge or has gone through this before and got a result it is greatly appreciated. Thanks

You won't get anywhere with the contract as you will have one. The fact you dont have a copy does not mean the lender doesnt have a copy.

You are totally reliant on the goodwill of the lender as to whether they waive the charge or not. The FOS normally reject complaints on your basis if the lender does not waive the fee as the contracts for mortgages are pretty standardised nowadays and laid out as the FCA wants them to be. it was only some pre 2004 contracts which they had issues with.

Early repayment charge stand off

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