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Unfair/Excessive Mortgage ERC?

xeena · 2016-01-20 11:49:32

Hi, I’m looking for some advice about whether a Mortgage Early Repayment Charge can be classed as unfair due to the severity of the charge. Basically my bf and his ex signed up to a 2.99% fixed rate deal 2 years ago, without realising that it had a 5 year tie in @ 5% of amount repaid (so £5k on their £100k mortgage).…

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Argiebargie Posts: 7 Forumite

23 April 2017 at 8:21PM

It would be fairer if the lender had a sliding scale of charges which reduced the nearer to the end of the discount term you are - some do but mine doesn't. We have a five year fix with 11 months to go. Our ERC is £6250 (approx) but our monthly payments are only £336 so, £336 x 11 is £3696. I could understand if our ERC was £3696 but don't see how their losses can be more than this???

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Unfair/Excessive Mortgage ERC?

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