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EXPERT ADVICE

Can I leave my

mortgage early? If you’re planning to sell, you could
potentially port your mortgage, which

Lisa Bell, mortgage advisor at means taking your existing mortgage with
ESPC Mortgages, gives us the you to your new property.
lowdown on clearing your
mortgage ahead of schedule.

Normally, these charges are a percentage of the
enerally, there are a couple of mortgage’s outstanding balance and reduce in
common reasons why a homeowner line with the remaining term. For example, on a
Gmight want to exit their mortgage five-year fixed mortgage, the charges could be
ahead of its end date: perhaps you are in the 5% if you exit in the first year, 4% in the second
lucky position of having the funds to clear year, 3% in the third year and so on. Generally,
your mortgage early, or you’d like to sell your five-year fixed products have higher early
property. repayment charges than two-year ones, so it’s
worth checking your contract, as these charges
If you have the money to clear your can extend to thousands of pounds.
mortgage and you are contracted to a
mortgage product, such as a two- or five- If you’re planning to sell, you could potentially port
year fixed term, the likelihood is that you your mortgage, which means taking your existing
will incur early repayment charges, unless mortgage with you to your new property. Porting
you specifically took out an early repayment can potentially save you the early repayment
charge-free product. charge, however, it is subject to a new mortgage
application, and the terms of the lender at that time.
Most lenders will impose these early
repayment charges, as you would essentially The process of porting can be quite complicated,
be breaking your contract with them. This even more so if you’re looking to increase
penalty helps them to recover the losses your mortgage amount, or if you don’t have
they would have made on your subsequent a simultaneous selling and buying scenario. I
mortgage payments. However, lenders will recommend contacting an ESPC Mortgages
usually accept a reduction, typically around mortgage consultant, who can help you to work out
10%, without any penalty. the best course of action for your circumstances.

The information contained in this article is provided in good faith. Whilst The initial consultation with an ESPC Mortgages adviser is free and
every care has been taken in the preparation of the information, no without obligation. Thereafter, ESPC Mortgages’ charges for mortgage
responsibility is accepted for any errors which, despite our precautions, advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY ESPC Mortgages offer expert independent mortgage advice in Edinburgh. Whether you are looking for first time buyer mortgage
it may contain. BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A advice, are interested in finding out more about buy-to-let mortgages or would like to re-mortgage, get in touch with the team
MORTGAGE OR OTHER LOANS SECURED AGAINST IT. on 0131 253 2920 or fsenquiries@espc.com.
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