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Reclaiming ERP on a mortgage


mango6
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When I remortgaged last year with a new lender I had to pay ERP to current lender of £3000. I knew when I took the first mortgage it would incur ERP but £3k is a lot of money :( I have now heard that you can claim this back, is this right?? ta

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Do you refer to an ERC ( Early Repayment Charge). They are not penalties for breach of contract, they are agreed charges in the event that a borrower chooses to redeem their mortgage during the specified ERC term which is a right the borrower has to exercise if they choose to. ERCs are charged because mortgage lenders incur up front costs setting up mortgage accounts, Iinterest rates are less than it costs them to borrow the funds. So they lose money during the fixed or discounted term unless borrowers stick it out for the full fixed or discounted term. If you leave during the ERC period, the lender would always lose money if the ERC was not taken. I tried a few years back to get a refund and managed to get some of mine back, I got half returned as an out of court settlement, to my knowledge no one else has tried since.

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Yes there were. A few people ended up losing their cases and had around £5000 in costs added to their pain. Best stay well away from reclaiming ERC's.

WARNING TO ALL

Please be aware of acting on advice given by PM .Anyone can make mistakes and if advice is given on the main forum people can see it to correct it ,if given privately then no one can see it to correct it. Please also be aware of giving your personal details to strangers

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