KFI query

jrsga

Hi

I've a question on the ERC charges.

It says following the two year fixed rate period interest will be charged to the end of the month of redemption. The maximum chargee you are likely to incur during this period is £497.

To avoid this as I see it, when the time comes to remortgage I would have to ensure to remortage at the end of the month as i will be charged a full months interest even if I am only 1 day into the following month?

Is that practical? Is it usual for lenders to charge this?

thanks

ACG

Sounds like you are charged interest monthly rather than daily?

Who is the lender?

jrsga

Its a daily interest loan.

West Brom B/soc

ACG

Never used them so cant be sure but I was expecting you to say one of the smaller lenders.

Give them a call and ask them if their interest is charged daily/monthly/annually.

I suspect they will say Monthly and then you have your answer from the horses mouth.

jrsga

Thanks for replying.

No I confirm it is a daily interest loan - it is on the KFI.

My confusion is at the end of the fixed rate term. Could i realistically time a remortgage so that I do not get charged a full months interest even if I am only 1 day into the following month? Is that pratical? Would I have a say in that? Do lenders generally charge this?

thanks

libf

I've seen someone post about about a similar situation to this before. With a re-mortgage you can easily set the date to be the end of the month. Trickier with a move if there's a chain involved.