ERC should be 1% in final year of 2 year fix ?

deejaybee

Hi all,

Like many i am considering what to do re mortgage rates. My current 2 year fix @ 1.29% ends 31 August 23 ( with Barclays so i thinks it will be end March 23 before i get advised of switchover rates online )

My current balance is 66,544.xx , but my ERC is still showing at 1330.xx  which is about 2%,   i assumed it would go down to 1% now i am in final year of fix, unless i have to wait till start October..

Currently on hold to Barclays, prob another hour to go, online chat has been switched off !

IvyFlood

I would have thought you'd be in final year from 1st September this month

deejaybee

IvyFlood said:

I would have thought you'd be in final year from 1st September this month

Same !  Unless it stays at 2% for the whole fix, most recent statement was received in October 21, so should get new one in next fortnight or so ( although i will be away on hols anyway most of Oct )  Hopefully get to speak to Barclays today and get some clarity.

And i will ask them if there are any rates i can jump to ( if decide to go that route )

K_S

@deejaybee It can indeed be a flat rate all through to the last day of the fix. For example a 5 year fix have a x% ERC all through from day 1 to the last day of the fix.

The easiest way to check would be to trawl through your emails to find the mortgage offer from when you took out the mortgage. Section 8 Early Repayment should show something like this which will tell you what the ERC schedule is.

 

deejaybee said:

Hi all,

Like many i am considering what to do re mortgage rates. My current 2 year fix @ 1.29% ends 31 August 23 ( with Barclays so i thinks it will be end March 23 before i get advised of switchover rates online )

My current balance is 66,544.xx , but my ERC is still showing at 1330.xx  which is about 2%,   i assumed it would go down to 1% now i am in final year of fix, unless i have to wait till start October..

Currently on hold to Barclays, prob another hour to go, online chat has been switched off !

Orchid96

Just checked my mortgage offer from Barclays. The ERC is 5% until the last date of fixed term (10 years)

deejaybee

Yep i will do that K_S thanks.

Theres a bundle of envelopes i will have a look at now while i'm waiting..

deejaybee

Cant find anything that explicitly states the ERC percentage.

Interestingly - i found a statement from my previous 2 year fix @ 1.99% and judging by the statement, the ERC was 3% on that one !!!

Done 53 mins on hold now so ill wait it out

deejaybee

Finally got thru after couple of hours - confirmed ERC is 2% for duration of the fix.

Advisor was excellent,  probably the best customer support type person i have spoken to in years....

Have booked a telephone appointment with a Barclays Mortgage Advisor to discuss potentially breaking out of fix , whats available to me ( few days time so things probably changed again by then !! ) and the costs etc.

london21

deejaybee said:

Hi all,

Like many i am considering what to do re mortgage rates. My current 2 year fix @ 1.29% ends 31 August 23 ( with Barclays so i thinks it will be end March 23 before i get advised of switchover rates online )

My current balance is 66,544.xx , but my ERC is still showing at 1330.xx  which is about 2%,   i assumed it would go down to 1% now i am in final year of fix, unless i have to wait till start October..

Currently on hold to Barclays, prob another hour to go, online chat has been switched off !

Depends on your terms and condition with your particular product and lender.

If unsure contact your lender they will inform you.

deejaybee

@london21 -yep all confirmed now