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Early repayment charge
Combenew
Posts: 36 Forumite
Just running this by the forum for opinions please. The ERC on my mortgage is based on a percentage of the advance amount rather than amount outstanding at the time of redemption. Is this usual?
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Comments
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Seems unusual, but it is what it is (assuming you mean an existing mortgage rather than a proposed one).1
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yes, it's usually the amount outstanding at the time, but not unheard of.1
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The terms of the mortgage offer would have been clearly stated at the time you accepted them. Our opinion isn't going to change that.2
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I'd expect percentage of loan amount redeemed unless it's something unusual. Is is a standard first charge mortgage with a high street-type lender?I am a mortgage broker. 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.0
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Amazing to reveal but different lenders, and then different lending products (mortgage providers usually have more than one) have different rules.
When you re-read the paperwork you were sent about the product earlier, what did that say, please????0 -
Yes high street lender, first chargekingstreet said:I'd expect percentage of loan amount redeemed unless it's something unusual. Is is a standard first charge mortgage with a high street-type lender?0 -
Could you kindly set out or C&P the ERC para from your illustration or mortgage offer, please.Combenew said:
Yes high street lender, first chargekingstreet said:I'd expect percentage of loan amount redeemed unless it's something unusual. Is is a standard first charge mortgage with a high street-type lender?I am a mortgage broker. 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.0 -
It doesn't really matter if it's usual or not - you signed up to it and you're liable for it
The time to ask this question would have been before you signed, rather than now.0
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