Help re ERP!

adtheblue2

This is my first post and I'm hoping someone can help me as there does look to be some very good advance on here.

We've got a fixed rate (but transferable) mortgage with A&L with a 4% ERP but we're going to have to downsize our house to reduce our mortgage/monthly outgoings.

If we do that will we have to pay the full ERP's on our full mortgage balance or will we only have to pay the ERP on the difference between our current mortgage and the new lower mortgage (still with A&L).

Hope someone can give help.

Many thanks

Robert_Sterling_3

The best person to ask would be your lender and ask for their reply to be confirmed in writing.

unite79

The difference, so if your mortgage is for 100k, and it goes down to 50k, you will pay half.

dimbo61

You need to contact your lender and read the T&C,s of your mortgage offer.
If you sell up and downgrade the LTV might increase or decrease so its up to them if they will offer you a new mortgage at all.