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End of Early Repayment Charges??

Hi,
I've heard that ER charges on mortgages are ending in July 2008? Is that true?

Comments

  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    No. ERC's are a legal clause in any mortgage contract and will be enforceable for the period stated in the mortgage offer
    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.
  • Yip, that's what I suspected but I've just read my gf's annual mortgage statement from NatWest and it specificallt states:

    'As of 01 Jult 2008 any early repayment charges will cease to apply'

    Prior to getting the annual statement my gf said that she heard on the radio that they were supposed to be ending.

    I don't know what's going on but that would be fantastic. Anyone else heard of this???
  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    that sounds strange - unless your gf erc period does end then - may be specific to that product but generally, its as i said.
    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.
  • Thought it sounded too good to be true. She's only had a mortgage for 3 years and she coming to the end of her fixed deal.
  • I suspect that it means the ERC applicable to your GF account will cease to apply as of July 2008 as she will be at the end of her fixed deal thus out of the redemption period.ERC are here to stay, the alternative is that every lender offers only standard variable rate mortgages with no incentives at all.
  • dunstonh
    dunstonh Posts: 121,246 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If there was no ERC then there would be no fixed rates or other incentives.

    As others have said, it sounds like your GF's one is expiring on her current deal.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Noz
    Noz Posts: 3,869 Forumite
    Part of the Furniture Combo Breaker
    It's a statement specific to your GF's mortgage product, not mortgages in general
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