Early redemption fee in the last month of fixed rate deal

kingstreet

If the lender has raised the fixed rate funds internally, perhaps from retail deposits, it has the flexibility to waive an ERC close to the expiry date.

If the funds were raised in the markets and/or securitised such flexibility wouldn't exist and the lender couldn't break the agreement with the market counterparty without being held to the terms of the original agreement and the penalty paid.

Thrugelmir

ViolaLass wrote: »

ERC against the PR? If not the PR, why do it?

As I said earlier they didn't want to retain the business. C&G is now part of TSB following it's split from Lloyds. Who knows what their target market customer is and where they intend to position themselves in the broader market.