Early redemption charge refund

Pinkie19 · 19 February 2019 at 11:43PM

Hi all

I would like to check if anyone has gone through this situation and can advise.

My ex partner and I had a mortgage and bought a house together. However we separated last year and sold the house. Because we ended the mortgage early we had to pay ERC.

After that I bought a new property and ported the old mortgage over. And I requested the lending bank to refund the ERC and they did.

My question is: is this refund to be shared with my ex partner. Or Am I entitled to the full refund amount since I keep the old mortgage and its potential future charges?

I asked this question to the lending bank and they said I am entitled to it. But my ex partner is now asking for the money. I’m confused.

Thanks.

Thrugelmir · 19 February 2019 at 11:48PM

If your partner shared the burden of the ERC when the old property was sold. Then your ex deserves their share. What if they ported the mortgage. How would you feel?

Pinkie19 · 20 February 2019 at 12:09AM

I understand what you are saying. And I’m thinking what would be fair to both of us.

At the point of selling neither of us has anything to purchase. So we had to pay the ERC. Each of us shared 50% ERC.

Now I keep the old mortgage and it still a has long fixed term left. I would then be responsible for the full ERC if I need to end it early. If that happens in the future, it might be better for me to pay 50% ERC then get a completely new mortgage.

silvercar · 20 February 2019 at 9:11AM

You chose to go with the previous lender for your new mortgage, so the ERC on your new mortgage is all yours.

The old ERC belonged to both of you, you both paid it, so you both should have that refunded. The fact that your actions enabled the refund is irrelevant, you chose your new mortgage of your own free will.

Early redemption charge refund

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