Mortgage early redemption

[tinkerbell2]

I'm due to take ownership of a new property 25 days before my current mortgage deal ends. The bank (RBS) has just informed me that they will charge over �700 for cancelling the loan early.

Does anyone have advice on how I can avoid this payment. We can't now change the entry date as it's concluded and bridging loans end up being about the same amount. Someone has mentioned 'porting' the mortgage, is that a good idea?

Thanks for any advice offered.

[EverClean]

You can't avoid paying it. Your mortgage offer will state whether you can port the mortgage product. I don't know under which circumstances the porting will work. You would need to apply to RBS to accept the new property - valuation fees will apply - and even then there is no guarantee that it will be accepted. On top of this if the new mortgage is for a different amount to the old one it will cost you anyway -

If you are borrowing less then they will charge a penalty on the reduction.

If you are borrowing more then they are likely to charge you their Standard Variable Rate for the increase - around 7.5%