Mortgage with no early repayment charge and fees

MoneyQueen
MoneyQueen Posts: 927
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edited 10 October 2023 at 10:48AM in Mortgages & endowments
Are there any mortgage products available with no/low fee and no early repayment charge?

I will have a mortgage balance of £20,000 outstanding after paying off the remaining balance with Savings when my low fixed rate comes to an end in Jan 2024. So I will need to remortgage. I want to pay off the remaining balance from my salary as and when I can to avoid paying higher mortgage interest rates. I am not able to find any products that allow me to do that. I remember there used to be lifetime trackers like this few years ago. There are fixed products available for two years but I want to pay it off in 6 months or so.

I will see a broker but if anyone has seen any, can you please let me know? Only option I see is to go to Standard Variable Rate or get a personal loan. I already have a credit card debt (on 0% till March 2025) of 26000 so not sure if I can get a further unsecured loan. The plan is to clear the mortgage and then clear the credit card debt in 2024.

Thanks 
MQ

Comments

  • ACG
    ACG Posts: 23,621
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    There are variable rates with no ERCs, but they come with a £999 arrangement fee. 

    On a £20k mortgage you would probably be better finding a product with no arrangement fee and ERCs - 2% of £20k is £400. Or just sitting on the standard variable rate. On £20k the fees have a bigger impact. 
    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.
  • Yorkie1
    Yorkie1 Posts: 11,527
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    I will have a similar amount outstanding when my mortgage fix ends in January. I will stay with my current lender (Nationwide) on a product transfer. They offer products both with and without fees, and the tracker doesn't have an ERC.

    With a mortgage of that level, I wouldn't consider changing lender because of the possible legal etc. costs.

    You may well also find that some lenders will not offer new mortgages (i.e., switching lenders, not product swap with same lender) for £20K - some are minimum £25K, for example.
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