Woolwich ERC figure in contract&claiming

milliemollie

Hello everyone! Can someone please clear this up for me? I had a 3 year fixed term mortgage with Woolwich which ended last January. I paid a £275 ERC and yes this was stated in my initial contract. I've been reading about how this 'fee' has gone up and people have been able to claim the difference but if like me, it was stated in the contract, is there anything you can do? Am I entitled to any kind of refund?

BIG thanks!:wave:

HarveyGal

An ERC is an Early Repayment Charge - a payment you agree to pay if you come out of a fixed rate deal early (and that is not refundable unless you are taking out another mortgage and you follow the rules your mortgage proivder stipulates).

There is also a Mortgage Exit fee - which is a payment when you finish paying the mortgage but is not an ERC. I think these are the fees that have sometimes been overcharged but there is a sticky thread at the beginning of these boards which will tell you more.

milliemollie

Hi. Yes thanks for that. It was a Final Repayment Charge. I didn't come out of the mortgage early so were they within their rights to charge this amount of money?

milliemollie

Hi. Yes thanks for that. It was a Final Repayment Charge. I didn't come out of the mortgage early so were they within their rights to charge this amount of money?

Thanks
:wave:

_Andy_

Yes they were.

ginvzt

You signed up for 20 or so year deals, with special offer for 3 years with fixed interest. So you did leave early if you left at the end of 3 years. I think often it says that the final repayment charge will be waived if there are less 10 year of mortgage term left.

milliemollie

Thanks for clearing that up for me. I understand it now