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| Tricky things, ERCs … |
… there’s great uncertainty surrounding early repayment charges. |
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Every lender has a different way of charging early repayments. Some are a fixed % of amount – some are based on the long term interest rates |
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So, it’s vital your client understands that should they want to change their product or sell at some stage in the future, they could incur huge costs – up to 25% of the original loan in some cases |
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One thing’s for certain - there‘s a wide range of circumstances where these charges could bite – and, where they do bite, they can be substantial |
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It pays to be fully aware of your client’s short to longer term requirements. |
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For use by financial advisers only. This information has not been approved for use with customers. |
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