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early redemption charge question
Comments
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If you overpay each month within the contractual parameters you are allowed and as a result the balance falls to nil, what makes you think you would then have an early redemption penalty to pay?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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because it says that the ERC is applicable until 20320
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its with kent reliance and back then i wanted to long fix ( which was less than we's been paying on a 5 year fix ) to avoid any variable rates and to avoid paying fees every time we moved to a new deal ( 2-5 years ) I had no idea that it might even be achievable to pay it off early.0
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Because most people fix for 2 or 3 or 5 years. Maybe 10 years not for 25 years. And that'a high rate to fix at for such a long time.0
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In the late 90s, there was a clamour in the media to get lenders to offer very long term fixes. It was following the high interest rates of the mid 90s. They never took off but a few lenders did offer 10 and 25 year fixed rates.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Ronaldo_Mconaldo wrote: »Because most people fix for 2 or 3 or 5 years. Maybe 10 years not for 25 years. And that'a high rate to fix at for such a long time.
But you can only say its a high rate with hindsight ! at the time it was LOWER than the five year fix I was on and I would save the fees of a new product every 2-5 years - say I fixed every 5 years and the fee was £1000 thats £5000 !0 -
But they don't all have fees. Quite a lot don't.0
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maybe the variables don't have fees but the fixed rates do.0
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Our fixed rate was either free or had a fee of £99 (can't remember which). £1000 fees are not difficult to avoid.
Google suggests that your ERC is 3% not £1500. Can you confirm either way?0
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