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    • Kt87
    • By Kt87 13th Apr 18, 9:46 AM
    • 7Posts
    • 0Thanks
    Kt87
    Waiving ERC?
    • #1
    • 13th Apr 18, 9:46 AM
    Waiving ERC? 13th Apr 18 at 9:46 AM
    Hi I was wondering if anyone had any experience or advice regarding Early Repayment charges.

    We bought our property 2 years ago when there was uncertainty regarding interest rates and talk of them rising. We entered into a 5 yr fixed rate at 3.3%. Obviously they all fell just after this! We are now looking to sell our property and take out a higher mortgage. Our lender had said they will prot our current and look at an additional mortgage for the remaining fee (about 15k @ current rates 1.85%)

    We would face a £6325 ERC fee if we left our mortgage for a new lender which we canít afford on top of other fees unless we added to mortgage.

    I was wondering whether we would have a case to ask our current lender if we can waive the ERC if we agree to take the remainder with them and extend the term (currently have 19 years left would look at about 22 years for larger mortgage)? I donít know if it dreamworld but I have read information about the ERC is about the loss of business and interest on property which actually would be minimal if we stuck with them.

    Any experience of this? Thanks!
Page 1
    • ACG
    • By ACG 13th Apr 18, 10:17 AM
    • 16,831 Posts
    • 8,781 Thanks
    ACG
    • #2
    • 13th Apr 18, 10:17 AM
    • #2
    • 13th Apr 18, 10:17 AM
    I dont mean this to sound as blunt as it will, you can ask but they will refuse to.

    There is no reason for them to. It is part of the contract, they will also incur costs/lost income for you paying back the loan early. If they do it for you, they have to do it for everyone.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • TrickyDicky101
    • By TrickyDicky101 13th Apr 18, 10:58 AM
    • 3,004 Posts
    • 1,942 Thanks
    TrickyDicky101
    • #3
    • 13th Apr 18, 10:58 AM
    • #3
    • 13th Apr 18, 10:58 AM
    If your lender allows you to port your current rate (and you continue to borrow at least as much on the new property as you are currently) then there may well be no ERCs to pay. Check with your lender.
    • kingstreet
    • By kingstreet 13th Apr 18, 11:00 AM
    • 33,351 Posts
    • 18,042 Thanks
    kingstreet
    • #4
    • 13th Apr 18, 11:00 AM
    • #4
    • 13th Apr 18, 11:00 AM
    The loss isn't to your lender, it's to the third party which provided the rate swap to make your fix possible.

    You will not get this waived.

    Best you can do is port the current rate to avoid the ERC and take the increased borrowing on one of the lender's current products.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • fewcloudy
    • By fewcloudy 13th Apr 18, 11:54 AM
    • 220 Posts
    • 115 Thanks
    fewcloudy
    • #5
    • 13th Apr 18, 11:54 AM
    • #5
    • 13th Apr 18, 11:54 AM
    Hi I was wondering if anyone had any experience or advice regarding Early Repayment charges.

    We bought our property 2 years ago when there was uncertainty regarding interest rates and talk of them rising. We entered into a 5 yr fixed rate at 3.3%. Obviously they all fell just after this! We are now looking to sell our property and take out a higher mortgage. Our lender had said they will prot our current and look at an additional mortgage for the remaining fee (about 15k @ current rates 1.85%)

    We would face a £6325 ERC fee if we left our mortgage for a new lender which we canít afford on top of other fees unless we added to mortgage.

    I was wondering whether we would have a case to ask our current lender if we can waive the ERC if we agree to take the remainder with them and extend the term (currently have 19 years left would look at about 22 years for larger mortgage)? I donít know if it dreamworld but I have read information about the ERC is about the loss of business and interest on property which actually would be minimal if we stuck with them.

    Any experience of this? Thanks!
    Originally posted by Kt87

    Rising/falling interest rates seems irrelevant here.
    Sure, fix if you think they will rise, but don't fix for 5 years and then decide to sell 2 years later, that's disastrous.
    Feb 2008, 20year lifetime tracker with Sprogget and Sylvester, 0.14% + base for 2 years, then 0.99% + base...
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