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ERCs.... the second 'collar'

Alan_Cross · 2009-06-28 16:57:44

My lender has a policy of allowing only 10% capital repayments in any one calendar year on fixed rate mortgages. Any further payments would trigger swingeing 'early redemption charges'. I gather this is not uncommon. I wonder how much profit is made via this fairly tawdry strategy. The lenders try to have it both ways with…

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maninthestreet Posts: 16,127 Forumite

29 June 2009 at 8:08AM

Wait until the end of fixed rate period, then pay off your mortage. Assuming the ERC only applies during the period of the fixed interest, there will be no ERC to pay.

"You were only supposed to blow the bl**dy doors off!!"
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ERCs.... the second 'collar'

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