Early Repayment Charge?
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Gerschwalker
Posts: 5 Forumite
Hi, looking for some advice. Currently on a fixed mortgage that has 2 more years on it at 4.14%. The ERC would cost us £5000 but interest rates are a lot lower now. My question is whether to stick with current mortgage deal and avoid ERC or to pay off mortgage with ERC so we can access better deals. Thanks!
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Comments
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It all depends on the maths.
If you can save more than the ERC, then yes. If not, then no.0 -
We have something similar, except we have a 10k ERC but want to remortgage to extend, with the charge and additional borrowing we would be around the same each month! Our house is currently worth around 345k and we have 203k on the mortgage... it's a tricky one! Any ideas??0
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Sorry my advice would be to go for it if the figures work out, you may well end up making back in the ERC in interest rate cut and be better off each month ... ask the broker to crunch the figures for you0
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Thanks everyone!0
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