ERC yr1;1% yr2;0.5%

moneysavinggirl40

Does anyone know if these NAT WEST ERC percentages is on the original amount borrowed or on what the outstanding amount is at the beginning of each year, or on the outstanding amount at time of coming out of deal?

edinburgher

As I understand it, ERC is levied on the amount you're looking to repay (i.e. repay £10k in year one, they'll charge you £100).

I don't see how the others would be legal, not sure why you'd be charged a proportion of amounts that you would already owe less than (i.e. original balance etc.)

moneysavinggirl40

edinburgher wrote: »

As I understand it, ERC is levied on the amount you're looking to repay (i.e. repay £10k in year one, they'll charge you £100).

I don't see how the others would be legal, not sure why you'd be charged a proportion of amounts that you would already owe less than (i.e. original balance etc.)

So its a percentage of what you have overpaid or repaid? Rather than how much you still owe them..

moneysavinggirl40

moneysavinggirl40 wrote: »

Does anyone know if these NAT WEST ERC percentages is on the original amount borrowed or on what the outstanding amount is at the beginning of each year, or on the outstanding amount at time of coming out of deal?

Just confirmed with provider from their website that the charge is usually a percentage of the outstanding mortgage balance - for example, 1% of £100,000 (which would be £1,000).