Early Repayment Charge

Spangled

kingstreet wrote: »

In post #10 he's quoting a current Coventry product to illustrate the ERPs are better now than they were when he took out the original product.

Aha - thanks Kingstreet.

Apologies dan_laura - got confused there.

Thrugelmir

dan_laura wrote: »

I think your the person missing the point here!

What i am saying in relation to you and other comments is that i understand the reason behind giving these charges etc. I understand that contracts are a legally binding document. But what i also know is that an early repayment charge has to be a genuine loss that the lender may encounter. If as a previous poster mentioned we dont know the penalty they might incur on the money they borrowed to borrow me thats fine, although their rules state they should tell me the basis on which it is calculated. My understanding of that is if they are receiving a penalty from their lender that should be explained to me.
Again in relation to another post up here about they might fund the repayments for a short space of time to avoid their own penalty i fail to see why now with a total repayment of £1400 for the remaining months where 35% of that is capital repayments how can my charge be fair at £3k. Thats all i am asking mate. Im not asking for you to reply with an answer that suggests people are less intellectual than yourself. Just purely asking a question and asking if anyone could explain why. Which some people have!

In my original post I did suggest porting the mortgage. As a way around the problem. That point you appear to have glossed when you replied here.

You'd probably be bored if we discussed how lenders finance and manage their mortgage books.

I have empathy with you. My replies I merely tried to keep factual. As there's no mileage in personal opinion when it comes to the law.

:beer: