Early repayment charge on mortgage

[LindyMoe]

We're selling our home and have 2 months left on the fixed term. My bank has quoted £5k to leave but I can't do that.

Is it possible that we could delay the redemption of the mortgage by a month? The mortgage only being £1k, it baffles me to pay this much.

Sorry this is the first time I've sold and I tried to do this all in line with the fixed term ending and not going on SVR, but this is hard!

Do you think we'll lose the house we've put an offer on by delaying it a little?

Can't you port the mortgage over to the new property?

Can you port something that has 2 months left?

My thought it that by the time we complete, it could very much be the end of the fixed term

Worth asking surely?

Can you just delay the purchase for 2 months?

Very good point, and will do thanks. I hadn't thought of that!

If you only owe £1k don't worry about ending up on the SVR, the difference in cost will be pennies, surely?

But yes fixed rates are usually portable so that's the first thing to check.

How far through the seling process are you?
If literally just going on the market, you will be out of the redemption period by the time you complete.
If at the point of exchange, delaying 2 months isn't ideal but definitely worth asking for.

My offer was accepted last week and now we're arranging mortgages and surveys. So is it feasible that by the time we're ready to complete, it ERC won't be in place?

Oh this drives me mad, we owe £29 and they want £600 to redeem it, the product finishes at midnight tonight and even this morning they were holding out for the £600.

I will wait twenty four hours and they can jog on.😡

I thought that the early repayment charge had to be proportionate to their loss, ie representative of the amount of interest lost by ending the contract early?

But if you only had an offer accepted last week OP, it's very likely that you won't be able to complete before the end of the current fix anyway or you'll be able to string it out that long without introducing a significant delay into the process, ie when they start talking about exchange and completion dates, you can say 'any day after X due to our mortgage'.

But like I said in my last post, don't worry about moving over onto the SVR because the difference in cost on £1k will be nothing (if it's 2% higher, that's £20 per year so not even £1 a week extra interest to pay).

It is very, very, very likely that the process will take more than 2 months!
We were estimated 12-16 weeks - and took the 16 for a fairly small, easy, chain.
Get the date the product finishesfinished confirmed, and as soon as people start talking dates, make sure you say not before X. But I doubt not moving until July is going to cause an issue, unless you are part exchanging for a totally completed newbuild, an auction property, or some other unusual transaction - and are in England.

It's very unlikely you'll have completed within 2 months. I wouldn't worry about the redemption charge. Have a look at the buyers/sellers waiting for exchange thread on the property board. It's painfully slow.

Very, very unlikely you will exchange/complete in under two months tbh.

As others have said it is highly unlikely you could complete in two months even if you wanted to, but if things do move at light speed just tell your solicitor you can't complete before x date.

Just check that it actually says early redemption charge.

Most lenders have a closing fee which could be about £200 and they will also disregard any payments you may have made but haven‘t been applied to your balance yet and add in any amounts due until your expected completion date. So it is possible that a small amount due may not include any ERC.

Thanks everyone, spoke to solicitor and he said the same as you all. He's added a note not to complete before 1st July and says it's unlikely we'll complete by then anyway!

Thanks everyone, super helpful

FD rang the £29 we owed them is now gone, and they owe us, .08p

I can live with that,

Today the mortgage account is now sitting at..... Drum roll please....

ZERO

I thank you. 😂😁😂

Did you get your 8p?

Actually no……….

But they can have it quite frankly, I have played them long and hard on this last borrowing, supposed to be over four years cleared down in eighteen months, and for the last year have owed them in the region of £40 on a fixed rate hovering somewhere near 1.5%, we were paying about 7p interest.

Oh how I laughed…….