Exiting a mortgage early

Author
Discussion

Caddyshack

10,605 posts

205 months

Friday 25th June 2021
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Jonno02 said:
Caddyshack said:
Who was the lender? How long ago? I bet they only waived it on renewal of the product under retention in the last 4 months of the current deal (like Santander), lenders will not do it 2 yrs in to a 5 yr fixed for example.
Just looked back to find out. Halifax, 13 months left of a 3 year product. Early exit fee waived. This was in 2018.
Very odd. I deal with them a lot on premiere and normal channels and I would say that this is totally unheard of although some of the branches have had a reputation for being a little loose with their rule book in the past but I doubt a branch would have the clout to waive that.

Tlandcruiser

2,788 posts

197 months

Saturday 26th June 2021
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Caddyshack said:
Unfortunately lots of wrong answers in this thread.

As a broker of 25 years there is little to no chance at all of getting a lender to roll over on an ERC penalty...it is priced in to the contractual agreement for a reason. No amount of foot stamping will get them to not charge it.

Most deals allow for 10% overpayments per annum so you can reduce the mortgage in chunks but if you exceed that amout then a pro-rata penalty will be payable.
Santander waived the fee when I approached them directly to get a new mortgage. This was two and a half years ago when I wanted to move house.

Caddyshack

10,605 posts

205 months

Saturday 26th June 2021
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Tlandcruiser said:
Caddyshack said:
Unfortunately lots of wrong answers in this thread.

As a broker of 25 years there is little to no chance at all of getting a lender to roll over on an ERC penalty...it is priced in to the contractual agreement for a reason. No amount of foot stamping will get them to not charge it.

Most deals allow for 10% overpayments per annum so you can reduce the mortgage in chunks but if you exceed that amout then a pro-rata penalty will be payable.
Santander waived the fee when I approached them directly to get a new mortgage. This was two and a half years ago when I wanted to move house.
Seems maybe the lenders direct have been doing things differently based on your post and one other.

Tlandcruiser

2,788 posts

197 months

Monday 19th July 2021
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Caddyshack said:
Seems maybe the lenders direct have been doing things differently based on your post and one other.
Maybe it depends on size of mortgage, term, risk or even if they have achieved mortgage targets etc?? It maybe discretionary?

Armchair_Expert

18,172 posts

205 months

Tuesday 20th July 2021
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Santander refused to waive our ERC when we wanted to move in year 4 of a 5 year fixed. Refused to port or transfer the mortgage over. We paid £12k in penalty fees alone to move. All for a new mortgage with Halifax.

TheDrownedApe

1,016 posts

55 months

Tuesday 20th July 2021
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i have 1 year left on a 5 year fixed. CAlled HSBC to enquire about switching to another of their products and told they NEVER waiver the early repayment charge

C G

833 posts

189 months

Thursday 12th August 2021
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Just moved to a different deal with current lender (Nationwide) in month 57 of 60 and no charge payable.

fooman

193 posts

63 months

Thursday 12th August 2021
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Depends on contract but I know one person who paid off most of his mortgage without actually exiting to avoid early exit fees, while we had zero exit fees with Nationwide.

Caddyshack

10,605 posts

205 months

Thursday 12th August 2021
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C G said:
Just moved to a different deal with current lender (Nationwide) in month 57 of 60 and no charge payable.
Yes, that is common with them if taking a renewal deal or porting in last few months...quite different to asking for a new deal half way through which is what the thread was about (I believe)