If you already have a mortgage with the Furness and want to move home, you will have to pay off (redeem) your existing mortgage and will have to pay any Early Repayment Charge if applicable under the terms of your existing mortgage. You would normally have to pay the Early Repayment Charge when repaying your mortgage but it is possible some or all of the Early Repayment Charge can be refunded if you take out a new mortgage with us providing you comply with the conditions set out below.
In order to get a full refund of your Early Repayment Charge you must take out a new mortgage with us for the same amount as your existing mortgage and carry forward the existing product terms to your new mortgage. In addition you will have to comply with the lending criteria applying at that time and complete your new mortgage within 6 months of repaying your existing mortgage.
If you need to borrow more when you move you can often top up the difference between the portable amount and your new mortgage with one of our other products which is available at the time.
If you borrow less than the portable amount, then we can only refund part - on a pro rata basis - of the Early Repayment Charge which you paid e.g. if your existing mortgage is £50,000 and you only wish to borrow £40,000 on the new mortgage, 80% of the Early Repayment Charge will be refunded on completion of the new mortgage.
The terms applying to the portable amount of your mortgage will depend on the terms applicable to your existing mortgage when your new mortgage completes. If you are still benefiting from a special product on the portable amount i.e. the mortgage is still on a fixed or other rate, then the portable amount must continue on the same interest rate and terms as your existing mortgage for the initial period and on the Society’s underlying variable rate thereafter.