need advice on early repayment penalty - NATWEST

gemma.zhang

Hi All,

I received the mortgage statement from Natwest yesterday, and have felt sick to my stomach and lost sleep every since, and would like to hear advice from you guys.

We have been charged overpayment penalty of 5.8k, which is really a lot of money !!!! We have called many many times over the year to make sure our overpayment doesn't exceed its 10% overpayment limit, every time, has been assured it's fine, it's not yet exceeding !!:mad: really didn't expect it to be such a big blown to my head !!!....

In our contract it says penalty if we pay exceed 10% of the outstanding value at the beginning of the year.. we borrowed 218k, so 21.8k would be it, and I understand it to be 21.8k outside the ordinary repayment amount.... and that's what we paid extra.. around this amount, NEVER EVER expected the overpayment including the equity of the repayment part !@!!???..

i really feel sick, and it's a long time to be monday before I can call them !!?? and i am so !!!!ed off that they kept giving us the WRONG INFORMATION to get us into this unfair penality...

any advice welcome.. i really feel depressed, and very much depressed. it's not easy to safe up to that nearlly 6k, and what on hell do we deserve it !!!???

sighhhhh

Gem

gemma.zhang

any advice pls.. it's really killing me at the moment.. i am losing my sleep on it. ..
sighhhhhhh..
life's hard.

Noz

Where on your statement does it state this? Are you sure this is an ERC you have been charged or is it telling what you would be charged if you redeemed you mortgage?

dunstonh

Dont natwest statements show the early repayment charge for information only if you were to redeem the mortgage? Not that you have actually been charged it.

Even if you did exceed the 10% overpayment limit, you only pay the ERC on the amount above. not the whole mortgage.

gemma.zhang

hmmmmmmmi am very confused now !!!..
what it says on the paper is like this:

Early Repayment Charges
The early repayment charge as at 20Oct2008 is £5,781.. as of 01Sep2009 any early repayment charges will cease to apply.

Redeeming your mortgage
Cost of repaying your mortgage in full as at 17Oct2008 is
Morgage balance £192,725
Early repayment chcarge £5,781
Total £198

As it's my very first time ever to receive mortgage statement. I do hope it's that i misunderstand it.. pls help !!!

Kavanne

That sounds like it's for your information only.... Have you called them? Mortgages were open today

gemma.zhang

i did !!!.. their phone call is rubbish..... after a couple of options, and it told u .. the office is now closed, open from 8.30AM Monday to Friday

gemma.zhang

any one pls.. let me know i am wrong, so i can have a good night sleep tonight !!! ..... i have a feeling. i did understand it the wrong way :-S.. fingers cross.

_Andy_

Chill - I think as Dunston indicated it's an indicative figure for IF you were to close the mortgage now (i.e. early). It's nothing to do with what you've been overpaying.

gemma.zhang

REALLY ? i would be delighted to hear that !!! have been feeling sick to my stocmache .. is it like that in any other mortgage statement !?
.........
sorry to ask this stupid question..

LilacPixie

I think it might just be a for information figure.

My mortgage is with halifax and I'm sure my statement sayd something similar. Early repayment charge to 12th May 2009 XXX Early repayment charge to 12th May 2010 XXXX after 13th May 2010 No early repayment charges will apply