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10% ERC really?
Gynx
Posts: 37 Forumite
Hello
I've just been looking at remortgaging after noticing a significant potential saving.
Currently paying £620.60 a month on a 3.69% fixed for 5 year (from August 2013) deal.
The house value has risen (£160,000 up from £140,000) so my LTV on the remaining £115,000 I have left is under 75% meaning I can get new 5 year deals for £490 per month (annual saving of £1334 including the fee)
However Leeds building society have just told me that with little over 2 years left from my 5 year deal, I'd have to pay £10,400 to exit to a new lender or remortgage with them.
Does this sound right? As it then requires a interest rate of -0.69% to make it worthwhile lol
I've just been looking at remortgaging after noticing a significant potential saving.
Currently paying £620.60 a month on a 3.69% fixed for 5 year (from August 2013) deal.
The house value has risen (£160,000 up from £140,000) so my LTV on the remaining £115,000 I have left is under 75% meaning I can get new 5 year deals for £490 per month (annual saving of £1334 including the fee)
However Leeds building society have just told me that with little over 2 years left from my 5 year deal, I'd have to pay £10,400 to exit to a new lender or remortgage with them.
Does this sound right? As it then requires a interest rate of -0.69% to make it worthwhile lol
0
Comments
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8.6%?
Seems a lot for a five year fix.
I'd expect more like 5%.
I've just looked back, but in 2013 we did only three Leeds cases, all three year fixed rates where the penalty was a tiered 4%/3%/2% as the three years passed.
Original KFI or Offer handy? See Section 10.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Does this sound right? As it then requires a interest rate of -0.69% to make it worthwhile lol
Obviously, we don't have the contract you signed available to us. That should be the first thing you look at as it will verify the terms you agreed. It will also be your ammunition against Leeds if they are giving you the wrong info as you can make reference to the contract terms.
As kingstreet says, this sounds a lot higher than expected.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Yea going to check contract as soon as I get home from work. Was just suprised at such a high value
That said even at 5% it will be tight to make it worth while0
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