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Remortgaging from RBS and the ERC

Engeroosi
Engeroosi Posts: 493 Forumite
Part of the Furniture 100 Posts Combo Breaker
in Mortgages & endowments
I have arranged for a remortgage from RBS to HSBC, the ERC is 2% of the balance when remortgaging. Now this is all straight forward BUT...

It also has 10% per year that you can overpay without incurring any charges, so I believe the ERC should be 2% of 90% of the balance being remortgaged and not 100%.

Hope this makes sense. Does anyone have experience with this at all before and advice on whether I am correct or wrong.

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Are you reducing your balance by 10% prior to remortgaging?
  • Meeper
    Meeper Posts: 1,394 Forumite
    Good try, but this doesn't work unless you are making the actual overpayment prior to the settlement.
    I am an Independent Financial Adviser
    You should note that this site doesn't check my status as an Independent Financial Adviser, so you need to take my word for it. This signature is here as I follow MSE's Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Engeroosi
    Engeroosi Posts: 493 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    So is it possible to arrange for HSBC to make 2 seperate payments or is this unheard of?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Engeroosi wrote: »
    So is it possible to arrange for HSBC to make 2 seperate payments or is this unheard of?

    Remortgaging is a singular transaction.

    To save money. Use your savings to pay down the mortgage. As any overpayment will be refunded when the transaction is complete.
  • Engeroosi
    Engeroosi Posts: 493 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    ok, unfortunately thats not possible as savings are tied up. Bit annoying as its £250 quid I hadn't accounted for, but save that and more in the new mortgage.
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