We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Ditch & Switch Mortgage - ERC?
BoracicLint
Posts: 235 Forumite
Morning,
I've been considering taking advantage of recent house price increases by remortgaging to move myself into a lower LTV band.
I have 2 years left on my current deal (4 year fix, 95% LTV) and although it carries a hefty £4500 redemption charge, I believe that considering I am now in the 80% LTV band, even after factoring in the ERC, it will be cheaper to switch, knocking 5 years off the term and saving myself about £100pm!
The question is, can I add the ERC to the new mortgage? Do most mortgage lenders allow this?
I've been considering taking advantage of recent house price increases by remortgaging to move myself into a lower LTV band.
I have 2 years left on my current deal (4 year fix, 95% LTV) and although it carries a hefty £4500 redemption charge, I believe that considering I am now in the 80% LTV band, even after factoring in the ERC, it will be cheaper to switch, knocking 5 years off the term and saving myself about £100pm!
The question is, can I add the ERC to the new mortgage? Do most mortgage lenders allow this?
0
Comments
-
Provided you are not going over 80% LTV I don't see why not with most providers.
Make 100% sure you are making a decent saving though and watch out for issues like your ERC reducing on a product anniversary.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
what do the numbers look like. loan, rate, term
You have to recover the £4.5k in 2 years(ish) to make it worth it.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards