Early Repayment Charge

[ptc_campbell_gmail_com]

I currently have a 5 year fixed BTL Mortgage with Leeds building society at 2.14%.
I am looking to sell the property although I am being asked for an early repayment charge of £3k.

Given the base rate is now 3%, and the rate for this same product is close to 6%. I would of thought they would be interested to work with me on this, although this didn't seem the case when I spoke to them on the phone. 

Has anyone any experience of getting out of a fixed rate without paying an early repayment charge due to an increase in interest rates?

Thanks in advance.

[astonthemortgageguy]

Lenders are extremely rigid with things like this unfortunately, I've never seen somebody get out of an ERC unless they were porting the mortgage or miss-selling can be evidence (also very difficult)

[Stuart Phillips]

Its a fundamental part of the product im afraid. You get that 5 years at 2.14%, they also want that 5 years worth of interest from you. So the ERC can be seen as their guarantee on that.

The only time lenders might do this is if you are taking a new deal with them or porting/miss-selling as Aston says. Otherwise you have to see it as a cost of doing business, and factor it into your calculations im afraid.

[Georgie Thew]

Are you buying another property or selling and going into rented accommodation? 

If you are just moving house, have you considered porting the mortgage over to the new property? This would avoid any early repayment charges and the majority of your mortgage would remain on your current fixed rate.