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No early repayment charges after fixed term ends?
Mortgage_Moog
Posts: 178 Forumite
I was aware that during my 5 year fixed mortgage I have to pay 3% of the amount outstanding as a fee if I sell during those first 5 years but what about after that? I've read the paperwork and it looks as though there is no fee (other than £80 for completing the mortgage) after the fixed term ends. Is that normal? It just says the ERC applies until 2021
It doesn't really matter seeing as I'll have it all paid off within 5 years anyway but it seems odd that after the first 5 years I could just pay it all off without incurring a fee.
It doesn't really matter seeing as I'll have it all paid off within 5 years anyway but it seems odd that after the first 5 years I could just pay it all off without incurring a fee.
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Comments
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It is standard for the early repayment fee to only apply during the fixed-rate term.0
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Mortgage_Moog wrote: »It doesn't really matter seeing as I'll have it all paid off within 5 years anyway but it seems odd that after the first 5 years I could just pay it all off without incurring a fee.
Are you sure you want to have paid it all off within the 5 years?
Not that I am advocating keeping the debt, but with the ERC make sure you do you calculations to work out whether it is worth keeping the mortgage and paying the extra interest vs paying the ERC.0 -
My interest rate is 3.49% and the ERC is only 3% so it's cheaper for me to pay it off. My mortgage is so tiny anyway that it really makes very little difference.0
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