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About to pull trigger on ERC.... Good idea?
AdmanPea
Posts: 113 Forumite
Hi
I have two loans on mortgage (one up in May 23 and other Nov 23). Current rates around 2.7%.
Can pay a £2400 ERC now and fix in for 3 years at 3.69% or wait and see... Payments going up from 619 now to 689 a month.
A good idea? Feel like things will explode next year. I have 23-24 years left on mortgage overall....
Feel sick...
I have two loans on mortgage (one up in May 23 and other Nov 23). Current rates around 2.7%.
Can pay a £2400 ERC now and fix in for 3 years at 3.69% or wait and see... Payments going up from 619 now to 689 a month.
A good idea? Feel like things will explode next year. I have 23-24 years left on mortgage overall....
Feel sick...
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Comments
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Plan was to go variable from May to Nov, line up loans and remortgage but that was before this storm...0
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@admanpea The Halifax 3yr fix at 3.69% for existing customers is by far cheaper than other comparable products in the market so it's unlikely to be around for much longer.
You'll have to do the numbers to see if the upfront cost (ERC plus the time you're losing on the lower rate) is worth the peace of mind of locking in a competitive rate for 3 years.AdmanPea said:Hi
I have two loans on mortgage (one up in May 23 and other Nov 23). Current rates around 2.7%.
Can pay a £2400 ERC now and fix in for 3 years at 3.69% or wait and see... Payments going up from 619 now to 689 a month.
A good idea? Feel like things will explode next year. I have 23-24 years left on mortgage overall....
Feel sick...I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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They’ve said because I’ve gone through process it’s locked in until February so going to wait until November so that I drop a % in terms of ERC.K_S said:@admanpea The Halifax 3yr fix at 3.69% for existing customers is by far cheaper than other comparable products in the market so it's unlikely to be around for much longer.
You'll have to do the numbers to see if the upfront cost (ERC plus the time you're losing on the lower rate) is worth the peace of mind of locking in a competitive rate for 3 years.AdmanPea said:Hi
I have two loans on mortgage (one up in May 23 and other Nov 23). Current rates around 2.7%.
Can pay a £2400 ERC now and fix in for 3 years at 3.69% or wait and see... Payments going up from 619 now to 689 a month.
A good idea? Feel like things will explode next year. I have 23-24 years left on mortgage overall....
Feel sick...0
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