Page 16 - March 2024

EXPERT ADVICE

Can I leave my mortgage early?

Shirley Mushet, mortgage advisor at ESPC Mortgages, gives us
the lowdown on clearing your mortgage ahead of schedule.

enerally, there are a couple of example, on a five-year fixed mortgage,
common reasons why a homeowner the charges could be 5% if you exit in the
Gmight want to exit their mortgage first year, 4% in the second year, 3% in the
ahead of its end date: perhaps you are in the third year and so on. Generally, five-year
lucky position of having the funds to clear fixed products have higher early repayment
your mortgage early, or you’d like to sell charges than two-year ones, so it’s worth
your property. checking your contract, as these charges
can extend to thousands of pounds.
If you have the money to clear your
mortgage and you are contracted to a If you’re planning to sell, you could
mortgage product, such as a two- or five- potentially port your mortgage, which
year fixed term, the likelihood is that you means taking your existing mortgage with
will incur early repayment charges, unless you to your new property. Porting can
you specifically took out an early repayment potentially save you the early repayment
charge-free product. charge, however, it is subject to a new EcoCosi
mortgage application, and the terms of the
Most lenders will impose these early lender at that time.
repayment charges, as you would
essentially be breaking your contract with The process of porting can be quite
them. This penalty helps them to recover complicated, even more so if you’re looking Delivering home comfort
the losses they would have made on your to increase your mortgage amount, or if
subsequent mortgage payments. you don’t have a simultaneous selling and
buying scenario. I recommend contacting with energy efficient retrofit
Normally, these charges are a percentage an ESPC Mortgages mortgage consultant,
of the mortgage’s outstanding balance and who can help you to work out the best
Visit our website to start
reduce in line with the remaining term. For course of action for your circumstances.
your journey towards a

ESPC Mortgages offer expert independent mortgage advice in Edinburgh. Whether you are looking for first time buyer cosier, more energy efficient
mortgage advice, are interested in finding out more about buy-to-let mortgages or would like to re-mortgage, get in touch
home today.
with the team on 0131 253 2920 or fsenquiries@espc.com.
The initial consultation with an ESPC Mortgages adviser is free and preparation of the information, no responsibility is accepted for any errors
without obligation. Thereafter, ESPC Mortgages’ charges for mortgage which, despite our precautions, it may contain.
advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY
BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A The Financial Ombudsman Service is available to sort out individual
MORTGAGE OR OTHER LOANS SECURED AGAINST IT. complaints that clients and financial services businesses aren’t able to
resolve themselves. To contact the Financial Ombudsman Service, please
visit www.financial-ombudsman.org.uk.
The information contained within this article is subject to the UK Changeworks Resources for Life Ltd. Is a company registered as a charity in Scotland and limited by guarantee. Charity No. SC015144. Company No.
regulatory regime and therefore restricted to consumers based in the UK. ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants SC103904. Registered office: Orchard Brae House, 30 Queensferry Road, Edinburgh EH4 2HS. VAT Reg. No. 927106435
It has been provided in good faith. Whilst every care has been taken in the Ltd which is authorised and regulated by the Financial Conduct Authority.
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