Summary
BORROWERS are paying up to GBP 7,500 in early redemption penalties to get out of mortgage deals prematurely, new figures show. The difference in early redemption charges (ERCs) between the cheapest and most expensive lenders is GBP 6,090, based on a GBP 150,000 five-year repayment mortgage being redeemed a year ahead of schedule, according to HSBC.
The penalties often exceed the savings achieved by moving to a cheaper deal, its research shows. For example, a borrower with a GBP 150,000 repayment mortgage and wanting out of the 4.49 per cent five- year fix with Nationwide a year early would pay total ERCs of GBP 7,590.See the full content of this document
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Money Morsels: Early Redemption Can Prove Costly
However th...
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