Q&A

Answer a question


19 May 2010

Fixed rate and offsets - savings but would be hit with big ERC......

I have a mortgage of ca. £360k on a £400k flat. Previously shared mortgage with girlfriend (now split - see earlier post), and looking into options. Salary ca. €150,000 (bonus extra) and ca. £100k in savings currently (ca. 22k cash ISA, 8 Equity ISA, remainder saving accounts). Mortgage with Principality - fixed rate of 5% and will continue until July 2012. ERC of 3% applies until then. They have agreed I can take this on my own if I want. Is it worth a) Paying the ERC (ca.£10k and dead money from savings) and moving to an offset, b) overpay equity each month (unofficially they say I can do this but may rescind this option at any time so not fixed) c) shove a chunk of my savings into equity and live with the mortgage until ERC runs out or d) Something else? Thought appreciated! Kevin

  • REPORT This comment has been reported.

2 Answers

Answers

Be the first to answer

Do you want to answer this question? You need to be signed in for this feature

Answer a question

Be the first to ask a question

  • {{ question.title }}

    {{ question.authorName }} On

    {{ question.answerCount }} Answers

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom.


Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards.


While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.