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Early repayment charge question re: Northern Rock
beaker0573
Posts: 1 Newbie
Hello all,
Long time reader, first time poster etc. My wife and I currently have a fixed rate mortgage with Northern Rock until Dec 09. We need to remortgage earlier than that to free up funds to pay for IVF. I spoke to NR regarding the early repayment charge which currently sits at £1800 to see if that could be waved / reduced. They said no, the repayment charge would hold if we remortgaged before Dec 09, as we have had a better deal from our bank.
So my question is, can i pay off say 99% of the NR mortgage leaving a very small amount outstanding (£200) and wait until Dec 09 to pay that off?? To avoid effectivly wasting £1800...
Long time reader, first time poster etc. My wife and I currently have a fixed rate mortgage with Northern Rock until Dec 09. We need to remortgage earlier than that to free up funds to pay for IVF. I spoke to NR regarding the early repayment charge which currently sits at £1800 to see if that could be waved / reduced. They said no, the repayment charge would hold if we remortgaged before Dec 09, as we have had a better deal from our bank.
So my question is, can i pay off say 99% of the NR mortgage leaving a very small amount outstanding (£200) and wait until Dec 09 to pay that off?? To avoid effectivly wasting £1800...
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Comments
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The early repayment charge is levied to the amount you paid off. So, no would be the answer to your question.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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The early repayment charge is levied to the amount you paid off. So, no would be the answer to your question.
that's not necessarily true, which was a big advantage of the Northern Rock Flexible fixed rates, redemption penalties are only applied on full redemption.
Unfortunately it still doesn't help as the new lender will not be able to take a first charge until entire NR loan is cleared. If you need funds now it would perhaps be cheaper to arrange a secured loan with no erly repayment charges to tide you over than to repay this mortgageI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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