Early Repayment charges (ERC)

Nailer99

kingstreet said:

Nailer99 said:

And to answer your question, the 6% would be on the outstanding balance. E.g. on a 100,000 mortgage it would be 6,000.

Is it really?

Ah - I was a factor of 10 out with my calculation of 6%, but the point stands! The Mortgage offer letter should actually have the numbers calculated if the OP wants to check.

kingstreet

Nailer99 said:

kingstreet said:

Nailer99 said:

And to answer your question, the 6% would be on the outstanding balance. E.g. on a 100,000 mortgage it would be 6,000.

Is it really?

Ah - I was a factor of 10 out with my calculation of 6%, but the point stands! The Mortgage offer letter should actually have the numbers calculated if the OP wants to check.

Aye. Just a bit out.

The offer will set out the percentages and relevant dates and the maximum payable for each period. So on your mythical £100,000 it would say 6% of amount redeemed until DD/MM/YYYY and a maximum of £6,000 then if there was a lower payment in future years, perhaps 3% of amount redeemed until DD/MM/YYYY and a maximum of £3,000.