Redemptions

If your clients are taking out a new Skipton Building Society mortgage, we may be able to waive the Early Repayment Charge, as long as the following conditions are met:

• The new mortgage is completed at the same time the existing mortgage is repaid
• Your client must transfer their existing mortgage product to their new mortgage (this is known as 'exercising portability')
• The amount borrowed is not reduced. The early repayment charge is payable on the difference in borrowing if the mortgage is reduced
• If only one borrower named on an existing joint mortgage is requesting a new mortgage from us, just a proportion of the Early Repayment Charge will be waived. If the other borrower doesn’t want to exercise portability, they can transfer their entitlement in writing to the remaining borrower and the whole of the Early Repayment Charge will be waived.

The Early Repayment Charge may also be waived on a discretionary basis in the following circumstances:

• If a borrower has passed away
• If redemption takes place within the last month of their mortgage product term.

If you want us to consider waiving the Early Repayment Charge, then please forward us a scanned copy of your Early Repayment Charge waiver request on letter headed paper to repayments@skipton.co.uk. Or you can post it to:

The redemption statement is only valid up to the date requested, which must be within the same month. We cannot provide a redemption statement for a date outside of the current month. If a new date is required, please request a revised statement. Alternately if it’s within the same month, you can add the daily rate as shown on the redemption statement.

Should the last day of the month occur on a non-working day, we will allow redemption on the first working day of the following month, by CHAPS or faster payment, using the previous month's figure.

Should your client wish to redeem the mortgage during the final month of their product term, they may be able to do so without Early Repayment Charge, provided the relevant month’s interest is paid in full. Please contact us at repayments@skipton.co.uk if you wish us to consider waiving an Early Repayment Charge.

Once we have the funds to redeem the account fully we will release our charge from the property: the e-DS1 (or other form of discharge) is completed within ten working days of us receiving the funds. For Scottish cases, we will also need the Redemption Discharge Document. We will send the redemption discharge by post once we have sealed the document.

Please ensure payments are maintained up to the date of redemption, as cancellation of any instruction will automatically remove any Direct Debit discount which may apply and increase the rate at which the interest will be calculated. On full redemption of the mortgage account(s), we will automatically cancel the Direct Debit instruction.

We may agree, in exceptional circumstances, to suspend collection of a Direct Debit payment temporarily, e.g. where redemption is unexpectedly delayed. However, this can only be arranged by the borrower and will require the prior consent of our Credit Management Department, who they can contact on 0345 850 1766. Such an arrangement will not result in a higher rate of interest, but additional interest charges will apply if payment remains outstanding over a month end, as the mortgage balance will have increased.

We can't cancel any Direct Debit payments prior to redemption. If a Direct Debit payment is collected after redemption, we’ll refund the payment, plus any interest due, back into the borrower's bank account within ten working days of redemption.

An allowance has been made in the redemption figure for insurance rebates where appropriate.

Any Skipton Insurance cover currently held where the premiums are paid through the mortgage account will be cancelled on redemption.

Any subsequent mortgagee we have been made aware of will be noted on the redemption statement. If appropriate, please protect their interests by forwarding to them any deeds and documents we send you. An up to date search with the Land Registry should be carried out to check for any subsequent mortgagees.

Any solicitors’ costs incurred by us may continue to accrue. If these are shown on the redemption statement an up to date figure should be obtained for these immediately before redemption.

If the property is under Shared Ownership, you should liaise with the housing association to ensure that you also fulfil their requirements to enable the sale of the property.