Barclays/Woolwich Fixed Rate

omariqy

Hi all

I've seen that the above are doing fixed rates for 5 or 10 years at 2.99%. I asked the question on the phone but the answer wasn't clear. Say if I took out the 5 year fix and sold my house after 3 years, what would the early repayment charge be? See link.

http://www.barclays.co.uk/Mortgages/Fixedratemortgages/P1242557963470

Is it 3% of the house price or 3% of the remaining mortgage?

Finally, is there a way to avoid this charge, i.e. by moving mortgage over to the new property?

Thanks

Omar

amnblog

The charge is based on the outstanding mortgage balance at the time.

If you take the rate with you to a new property, you would pay the early repayment charge on any decrease in loan size.

omariqy

Thanks. Decrease in loan size? So if the new property was an increase in loan size, I assume I would need to apply first but potentially there would be no penalty?

amnblog

no penalty if the mortgage does not decrease