Jump to content

New Tracker with no ERC, should I put my a chuck of savings in to it?


Recommended Posts


Im not particularly tuned in to mortgages and I have just been on the phone with a broker who has found me a BTL tracker with no ERC and a 2k fee at 4.1%, Im a contractor so this is based on not needing a fixed income, anyway.... Am I being daft but if there's no ERC then I'm free to leave this deal whenever I like. I have a chunk of savings in a saving account of 1.4%, im thinking i should put a comfortable amount back in to the BTL otherwise I'm taking a 4.1% load out for the money to sit in a savings account of 1.4% then if there's not ERC I can take that money back out when I want to remortgage that house. 

Link to comment

In theory it makes sense - the difference between borrowing and savings rates is the biggest it's been in a long time. The only thing you need to be wary of is if it is possible to get that money back out in the future. It is likely that it will be fine, but there is always a possibility that a change in criteria, or your own circumstances could limit how much you can take out in the future

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...