Landlords seeking two, three and five year fixed rates, two year tracker and lifetime variable loans will see their ERCs reduced. A customer redeeming before the end of their 2 year fixed rate will now pay an ERC of 3% in Year 1 and 2% in Year 2. Those opting for a 2 year tracker will now pay an ERC of 2% in Year 1 and 1% in Year 2.
ERCs attached to TMW’s 10 year fixed rate mortgage, which is current the longest fixed rate product in the Buy to Let sector and only 10 year fixed deal, are unchanged as they are already stepped.
The revised structure, where charges reduce each year, means that customers who need to redeem towards the end of their deal period will now pay less to exit.
Henry Jordan, Managing Director of TMW, said:
“This move by TMW to step ERCs will provide landlords with greater flexibility, alongside offering some of the most competitive ERCs on the market.”
