Advice Please

andrea_stewart

Hi getmoreforless

Many thanks also for your input. The new deal would be 1.65% no fee ERC 2%/1%. Please see my post in reply to LillaD.

andrea_stewart

Hi Lilla D & getmoreforless

I'm confused, so is it best to go for the 1.65% deal?

getmore4less

Depends how long you think it will take to sell the house and the portability of the deals.

if they will let you port the 2 bits to separate properties or you can work with them both going to the same property and optimizing overpayments then taking the deal is probably going to be worth while.

If that will not work then the cost of taking the deal and selling in less than 4/5/6 month depending on the cash back and overpayment is as shown in the calculations above.

Subject to adjustments for real amounts, timing and any ERC free overpayments you can afford to bring the ERC down.

Lilla_D

I can't see the 1.65% deal on the lender's website (unless I'm missing something), but obviously it's even better than the 2.02% deal and leads to bigger monthly payment savings.
Getmore4less is right that if we also take into account the reduction in your balance over the coming months, then the ERC amount and the time to make it worthwhile are reducing, so you could make up the difference sooner.
If in the meantime you can make overpayments as well to reduce the balance of the part on the new deal, then that would reduce the ERC even further. Remember, whatever you put in as an overpayment, you'll get it back when you sell the property.

andrea_stewart

So I think you're both saying we may as well take the risk with the 1.65% deal then. Many thanks for all of your help Lilla D and getmoreforless.

xyz123

Can you not move on to a retention product with existing lander without any erc. Some of the tracker products do not have erc. Check with your lender