Mortgage Express waives ERCs to help customers leave
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The lender has advised brokers that clients coming to the end of their deal between February 1 and June 30 2009 will be able to move their mortgage to another lender without incurring ERCs.
Clients will also be able to make capital repayments during the waiver period without having to pay ERCs.
Mortgage Express says this is a temporary concession and is writing to customers with an ERC in this period to advise them of the waiver.
A spokesman for Mortgage Express says: “Spring is usually the time when we see the biggest demand in terms of house movements.
“This offers home owners help with costs at a time when they most need it.”
A statement on the Mortgage Express website recommends that affected borrowers should contact their original broker in the first instance.
It adds: “We intend to carry out some follow-up communications to remind customers about the waiver and we will continue to suggest that they deal with their original broker. However we will refer customers who are unwilling or unable to do this to brokers with whom we have a referral arrangement.”
The move follows similar moves from other lenders, including government-backed Northern Rock.
In October last year Northern Rock encouraged existing customers to remortgage by getting in touch with a secret broker panel.
Edeus and Oakwood Homeloans have also offered its customers a ‘golden goodbye,’ or cash incentive, in order to redeem their mortgages or remortgage elsewhere.
Mortgage Express is offering no such cash incentive.
