ERCs- Early Repayment Charges - early exit fees. (merged).

flower28

I TOOK MY MORTGAGE IN 2004 AND PAID IT OFF IN 2007 AND WENT TO ANOTHER LENDER. I JUST WENT THROUGH PAPER WORK AND WAS CHARGED £1,652.28 ON A £50,984.28 AND £150.00 FOR ADMINISTRATION CHARGE. CAN SOMEONE HELP ME PLEASE? I WANT TO KNOW IF I CAN CLAIM THE erc back?

Thrugelmir

flower28 wrote: »

I TOOK MY MORTGAGE IN 2004 AND PAID IT OFF IN 2007 AND WENT TO ANOTHER LENDER. I JUST WENT THROUGH PAPER WORK AND WAS CHARGED £1,652.28 ON A £50,984.28 AND £150.00 FOR ADMINISTRATION CHARGE. CAN SOMEONE HELP ME PLEASE? I WANT TO KNOW IF I CAN CLAIM THE erc back?

The fee was contractual. Your choice to remortgage. So none.

Gambler

How do you pay the ERC without adding to the mortgage? Can you pay via credit card?


Thanks

dunstonh

Normally by cheque or debit card. Credit card is not normally an option but you can ask.

dopolous

I took out a 10 year fixed rate 4 years ago after a lot of soul searching. I now find that I am poaying over £300 PCM more than I need to and want to come out of the deal. I am aware of the 3% penalty I will have to pay and will pay this. I want to stay with the same lender and just go onto a SVR as this is nearly 3% cheaper. They have told me that they cannot offer me any products as 3 years ago they decided not to offer anything to customers who come out of contracts early. I pointed out that at the time of the contract this was not mentioned, and I may not have gone ahead, also that I wanted to stay with them, plus how was I to know the change in policy afetr the event?
I have asked for confirmation in writing, as they seem happy to take the extra money for another 6 years, but not to let me change.

Any advice would be gratefully received

Thanks

Thrugelmir

Who is your lender?

KarenColling

I am tying myself up in knots deliberating over my mortgage predicament......

I have 2 mortgages against my home. (One mortgage was 'ported' when I moved and I obtained another much larger mortgage to buy a bigger family home). The smaller mortgage is not an issue.

The larger mortgage is on a fixed term rate of 5.78% for another 6 1/2 years . When we took the mortgage out we couldn't afford the risk of the interest rates rising so fixed to ensure we were able to meet the payments. Early redemption would cost 3% which is approximately £4500. Our monthly payments are £930 .

I am completely torn as to what I should do next? Try and get a mortgage elsewhere on the basis that there are rates as low as 2.89% available (fixed for 3 years) which would reduce our monthly payments by £250 per month. Over 3 years that would be £9000 saved less £4500 ERC and an arrangement fee. However as I can't afford to pay the fee's upfront so the amount would be added to the mortgage....am I robbing Peter to pay Paul?

If the rates remained low past a 3 year fixed term the savings of reducing from a 5.78% mortgage rate to an approximate 3% rate for 6 1/2 years aren't far off £20,000!!

I know I had to take the fixed rate deal when I did 3 1/2 years ago or we wouldn't have had the courage to move (and probably wouldn't have been able to assure the mortgage lender we could afford the payments) but am now concerned that I am paying far more than I should be. ..... I would be grateful for comments/suggestions.

Both mortgages are with the Nationwide who I know are very competitive.:o

dunstonh

Karen, I suggest you post to your own thread. Your question is not related to this topic and you may get more answers on your own thread. Just copy and paste what you have typed here and you should be fine.

KarenColling

Thanks...I have no idea how to open a new thread...my Husband and I have been around User Tools, Forum help etc ....:(

kingstreet

Karen, if you come out of this thread back to the Mortgage & Endowment board there should be a "New Thread" button on the left and slightly lower than the "Mortgage & Endowment" words.