Unclear Key Facts doc re Early Repayment Charge

Chin

Hi all

hoping for some advice...i'm a bit confused by some of the terminology on my key facts document.

we have a 5 yr fixed mortgage with YBS which is due to end on 30th Sep 2016. If we leave before this date we are subject to paying 3% of the balance.
however today looking through my key facts document i noticed the following;

You will not incur an early repayment charge unless, before the end of the 30th September 2016 you:

- repay in excess of the 10% overpayment limit
- redeem your loan in full
- transfer to a different product with us
- transfer to our standard variable rate

I've spoken to YBS and they are a bit confused by this, ironic given it's their document, however to me, it seems that if i switch to their SVR i am not bound to any ERC.

YBS are saying that if I do anything with this product before 30th September then i have to pay the ERC, however i don't believe this is what the key facts document is saying.

It might be that i need legal advice on this from solicitors, but before i go down that road i want to make sure that i'm not missing anything glaringly obvious!!

thanks

davidmcn

Chin wrote: »

I've spoken to YBS and they are a bit confused by this, ironic given it's their document, however to me, it seems that if i switch to their SVR i am not bound to any ERC.

That's true, but are you entitled to switch to their SVR? If it doesn't say so then probably not.

Thrugelmir

I suspect that there's an all encompassing "subject to" clause in your full terms and conditions. The KFI does not give you the right to. Just that you may be able to with the lenders agreement.

kingstreet

There will be no ERC to pay "unless" you do any of the following.

It is telling you the things you cannot do if you wish to avoid any ERC.

Chin

gutted - worth a try. looks like i'll have to cough it up

thanks all for helping