Early redemption penalty higher than on offer letter.

StephNotts

when we rang to get the early redemption figure in October we were told it would taper. The figure quoted was lower and whilst we accept that it changes, it surely have tapered by now to much lower. That's the issue.

StephNotts

No the amount hasn't increased. Interest only mortgage, exactly as it was.

Thrugelmir

StephNotts wrote: »

when we rang to get the early redemption figure in October we were told it would taper. The figure quoted was lower and whilst we accept that it changes, it surely have tapered by now to much lower. That's the issue.

Then the figure quoted was incorrect. Was the redemption figure quoted in writing or just verbally.

TrickyDicky101

Could you actually check your mortgage agreement please - that is where any ERC you are obligated to pay will be defined. Otherwise, this thread is largely pointless - no-one can state with any certainty why the amount has moved or not as we can't read your agreement!

StephNotts

The agreement states a maximum amount repayable that is lower than that I've been charged just for Early Repayment. I've written to them again asking for their workings. I do think the advice I had on the phone from Clydesdale was wrong however, it's not replicated in writing anywhere which is bloody annoying.

Thank you for your help everyone, I'll see where I get on reclaiming the difference but their phone advice looks as if it's wrong IF the penalty doesn't taper throughout the final year. Grrr.

Thrugelmir

StephNotts wrote: »

I'll see where I get on reclaiming the difference but their phone advice looks as if it's wrong IF the penalty doesn't taper throughout the final year.

At best the ERC will taper annually, not monthly.