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How are early repayment charges paid when moving home?

1 reply

zuza96 · 14/03/2023 18:07

We are moving home and will probably complete in June, our current mortgage deal was due to end on 31 October this year. Our solicitor stated that as of now the ERC is £1300, I suppose that would reduce by June, but what I'm confused by is how will this be settled by the solicitor on completion? will it be from our sale proceeds? he said he will calculate it again once we exchange contracts and said that if allowed by the lender, they will deduct early repayment charge from the redemption figure. But I'm unsure of what that means?

OP posts:
Puppylucky · 14/03/2023 18:26

It means they add it to the mortgage on that property still outstanding at the date of completion. The solicitor (who receives payment from your buyer) will deduct this from the sale price and hand over the rest to you.

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