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That's the odd thing, she was saying it would be a separate product, with it's own payments, but that if we moved the main mortgage to another provider it would trigger the ERC. I'm going to call them back and check they had that right as why would we pay an early repayment charge on the 20k unless we were... repaying (remortgaging) which obviously I don't want to have to do 9 months in to the loan
Polygon-
If you switched to another provider then it’s less straightforward as providers often won’t share / lend on just some of the house - complications if you default for example.
So I’d guess they meant if you moved to another provider then they wouldn’t be happy to keep just lending the smaller amount, so you’d have to repay, so you’d trigger the ERC…
duncs
We did that with Nationwide on a previous policy and they set it up as a separate but parallel policy, so the term and the interest rate periods were the same (as were the billing dates), but it had a separate ERC amount.
It's been annoying in some ways (we ended up with three mortgages on one property from the same lender) but it avoided the issue you're describing. Perhaps float the possibility of a separate product tacked on - it's clearly possible in theory if Nationwide can do it - but they seem to be the whole ones who regularly do.