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Early Repayment Charges
SteveMcC
Posts: 1 Newbie
Hi all.
I took a £50k mortgage in Nov 2005. I've noticed on a statement that I was charged a reducing early repayment charge in each of the first five years. Starting at £2,500, £2,000, £1,500, £1,000 and finally £500. A total of £7,500.
For the life of me, I really don't understand what this is for. It was a brand new first time mortgage and I've never made any early repayments.
Does anyone know what this is for?
Many thanks, Steve
I took a £50k mortgage in Nov 2005. I've noticed on a statement that I was charged a reducing early repayment charge in each of the first five years. Starting at £2,500, £2,000, £1,500, £1,000 and finally £500. A total of £7,500.
For the life of me, I really don't understand what this is for. It was a brand new first time mortgage and I've never made any early repayments.
Does anyone know what this is for?
Many thanks, Steve
0
Comments
-
You haven't been charged it.
Its what you would have to pay if you discharged the mortgage within the fixed term.
Which you didn't.0 -
If these figures are listed in a box labelled 10, Mr Ginge is absolutely correct, these are merely outlines of what you would have had to pay to redeem early in your mortgage.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
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