Early repayment charge

thescouselander

Our 2 year deal is comming to an end on 31st December. We have secured a good deal with a different lender and I would like to get everything moved over ASAP in case they change their minds.

The problem is that there is an early repayment fee on our current deal and it is quite steep. My question is - is it worth phoning and asking if the building society (Nationwide) if they will waive the fee or would this be unheard of? I can't immaging they are making much money out of us because our rate is very low compared to whats currently on offer.

dunstonh

is it worth phoning and asking if the building society (Nationwide) if they will waive the fee or would this be unheard of?

Its unheard of. There are times it can be waived by remortaging away from Nationwide gives them no incentive at all to waive it.

I can't immaging they are making much money out of us because our rate is very low compared to whats currently on offer.

Deals are financed at outset generally and most often there is little or no margin on the deal itself depending on fee size.

Many lenders have 3 months as the time you can apply. Some have less (includng my own which I have to wait for 10 weeks before I can apply). If 3 months, then you are already there.

lisyloo

Our 2 year deal is comming to an end on 31st December. We have secured a good deal with a different lender and I would like to get everything moved over ASAP in case they change their minds.

Great, but bear in mind it can take 13 weeks to remortgages.
It can be done much more quickly but depends how busy the various departments are.

is it worth phoning and asking if the building society (Nationwide) if they will waive the fee or would this be unheard of?

No.
You simply tell them to complete the remortgage on Jan 1st i.e. the day AFTER the last day of your existing deal.
There should be somewhere on the form to fill this in.
Make sure it is clearly specified.
If you want to be doubly sure then ring them up and check once they have your application.

Locoblade

If you've booked a rate with a new lender and you're in the process of transferring to them, then as long as you don't fail their criteria (earnings, value of house etc) then they aren't going to change their mind. If they withdraw the rate you're applying for it will only be withdrawn for new applications, if you're already in the system then there's no reason to think they'll ditch you.

thescouselander

Locoblade wrote: »

If you've booked a rate with a new lender and you're in the process of transferring to them, then as long as you don't fail their criteria (earnings, value of house etc) then they aren't going to change their mind. If they withdraw the rate you're applying for it will only be withdrawn for new applications, if you're already in the system then there's no reason to think they'll ditch you.

Thats reassuring but I have heared of people having their mortgage offer withdrawn before it is drawn down - I assume, from what you say, this is not common practise for most lenders.

Locoblade

I think there was one post on here recently where that's happened, but that seems to be the exception.