Mortgage early repayment charge

gadget88

So I selected a new deal but not sure how I can find the £4 grand early repayment charge

Can I add it to existing mortgage? 

Hope my house sells for more? 

What would options be? 

Edi81

Not enough information. 
is your house up for sale?
who is your current lender? Do they offer any trackers. ERC indicates you are leaving your current lender

Emmia

Is it worth switching if you have that level of ERC? Does the new mortgage save you more than £4K over the term of the fix (I presume you're fixing).

If you add the £4k to the mortgage, you'll pay interest on it as it will increase the mortgage amount.

gadget88

Edi81 said:

Not enough information. 
is your house up for sale?
who is your current lender? Do they offer any trackers. ERC indicates you are leaving your current lender

Yes up for sale sticking with current lender. I have 3 years left on deal but wanted a 5 year deal 

gadget88

Emmia said:

Is it worth switching if you have that level of ERC? Does the new mortgage save you more than £4K over the term of the fix (I presume you're fixing).

If you add the £4k to the mortgage, you'll pay interest on it as it will increase the mortgage amount.

I would need a smaller deposit and they just refused my first application due to affordability. I’d need to take 4 grand off the deposit and already started application?

Emmia

gadget88 said:

Edi81 said:

Not enough information. 
is your house up for sale?
who is your current lender? Do they offer any trackers. ERC indicates you are leaving your current lender

Yes up for sale sticking with current lender. I have 3 years left on deal but wanted a 5 year deal 

Why do you want a 5 year deal? Does it save you more than £4k on the current 3 year deal?

gadget88

Emmia said:

gadget88 said:

Edi81 said:

Not enough information. 
is your house up for sale?
who is your current lender? Do they offer any trackers. ERC indicates you are leaving your current lender

Yes up for sale sticking with current lender. I have 3 years left on deal but wanted a 5 year deal 

Why do you want a 5 year deal? Does it save you more than £4k on the current 3 year deal?

To be honest I don’t know 

Emmia

gadget88 said:

Emmia said:

gadget88 said:

Edi81 said:

Not enough information. 
is your house up for sale?
who is your current lender? Do they offer any trackers. ERC indicates you are leaving your current lender

Yes up for sale sticking with current lender. I have 3 years left on deal but wanted a 5 year deal 

Why do you want a 5 year deal? Does it save you more than £4k on the current 3 year deal?

To be honest I don’t know 

In which case, you need to do the maths very carefully to make sure it will save you money (because you'd be adding it to the mortgage you'd really want a bigger saving than the £4k, as there will be interest on that amount).

Alternatively, if you're buying another property when this one is sold I'd avoid the ERC by porting (assuming your current mortgage allows this) sticking with your current lender.

grumpy_codger

Edi81 said:

...
who is your current lender? Do they offer any trackers. ERC indicates you are leaving your current lender

Really? I think switching from fix to tracker with the same provider similarly incurs ERC. Otherwise it would be far to easy  to get out of a fixed rate mortgage.

Hoenir

gadget88 said:

Emmia said:

gadget88 said:

Edi81 said:

Not enough information. 
is your house up for sale?
who is your current lender? Do they offer any trackers. ERC indicates you are leaving your current lender

Yes up for sale sticking with current lender. I have 3 years left on deal but wanted a 5 year deal 

Why do you want a 5 year deal? Does it save you more than £4k on the current 3 year deal?

To be honest I don’t know 

Provide the figures and allow someone the opportunity to do the maths. Might be an expensive mistake. 

Edi81

Op you need to give the full info. 

How long left on your current fixed rate?
I appreciate you want to fix for longer but you could end up losing money overall.