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Early Repayment Charge


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Hello there, I have recently resigned and have to work a non compete time until Sept 2011 and then I will be starting a new business. I know the business model will succeed as the plan, P&L forecast etc is almost idetntical to a business we ran and sold almost 3 years ago. My problem is this we have a mortgage with RBS. Its a fixed rate 2 year with an early repayment charge (ERC) of £19,995. RBS said that they would port the mortgage but given that currently I am between jobs I do not pass the required criteria. I have the same amount of money as the mortage in a fund that I havent been taking income from; and I have asked them if they would like this as security (have a charge against) plus as we are moving to another part of the country the new house will be less than current although bigger in size reducing the loan to value to 50%. They will not budge. I also have great trading history with Natwest in business and personal accounts. I would like advice from someone please as to negotiating RBS ERCs or getting them to see sense on a very solid (in my mind) application. Kind regards Boderick.

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