tapered early repayment charges???

missyp123

Hi,

I am just researching MTG products and looking at the limits on early repayment.

one im looking at states...
"10% capital repayments are allowed each year without incurring an Early Repayment Charge".

BUT im not sure what this next section is about???

"Tapered Early Repayment Charges apply up to and including 31 Aug 2018".

We would be looking for this to start end october beginning of november and this will be a shared owership mtg. (if that makes any difference!)

tia

beecher2

Is it a 2 year deal you're looking at? It probably just means you'll pay a certain % if you repay in the first year, and a slightly lower % if you repay in the second year.

ie ERC 3% in 1st year, ERC 2% in 2nd year.

missyp123

beecher2 wrote: »

Is it a 2 year deal you're looking at? It probably just means you'll pay a certain % if you repay in the first year, and a slightly lower % if you repay in the second year.

ie ERC 3% in 1st year, ERC 2% in 2nd year.

Thank you Beecher,

Yes looking at the 2-3 year fixed
By repay im assuming you mean the whole amount?

If thats the case then thats fine!

beecher2

Yes, or also if you overpay by more than 10% of the outstanding amount.

Paully232000

missyp123 wrote: »

Hi,

I am just researching MTG products and looking at the limits on early repayment.

one im looking at states...
"10% capital repayments are allowed each year without incurring an Early Repayment Charge".

BUT im not sure what this next section is about???

"Tapered Early Repayment Charges apply up to and including 31 Aug 2018".

We would be looking for this to start end october beginning of november and this will be a shared owership mtg. (if that makes any difference!)

tia

We have that with our 5 year fixed-rate mortgage,
Our early repayment charges are tapered as;
5% in year 1
4% year 2
3% in year 3
2% in year 4
1% in year 5

and then no early repayment when the fixed rate period has finished.

missyp123

beecher2 wrote: »

Yes, or also if you overpay by more than 10% of the outstanding amount.

thats good to know. tyvm

missyp123

Paully232000 wrote: »

We have that with our 5 year fixed-rate mortgage,
Our early repayment charges are tapered as;
5% in year 1
4% year 2
3% in year 3
2% in year 4
1% in year 5

and then no early repayment when the fixed rate period has finished.

brill ty i just couldnt get my head around it all earlier, to many figures rolling around!