8 months into a 5 year fix

exiledjedi

Currently at 6.18% with 4 yrs 3 months to go with nationwide - signed up to this when oil at 147 and economy looked like it was going down pan (which is has albeit with deflation as opposed to high inflation).
Just wondered if anyone has had any success in being able to come out of such a fixed product without paying the ERC (3% in this case). It makes sense to come out but really dont want to pay 5k in erc charges before paying a new mortgage product fee as well.
when you look stats things like these its incredible our banks are bust!!

any advice appreciated?

opinions4u

exiledjedi wrote: »

Currently at 6.18% with 4 yrs 3 months to go with nationwide - signed up to this when oil at 147 and economy looked like it was going down pan (which is has albeit with deflation as opposed to high inflation).

Ouch.

Just wondered if anyone has had any success in being able to come out of such a fixed product without paying the ERC (3% in this case).

:rotfl:

It makes sense to come out but really dont want to pay 5k in erc charges before paying a new mortgage product fee as well.

Tell us how much you owe (around £170k?) and how much you paid for the property. Then we can help assess the value of moving to a new lender.

when you look stats things like these its incredible our banks are bust!!

Nationwide isn't a bank, but they have borrowed the money they lent you at a high fixed rate too. They will be committed to their funders in the same way that you are committed to them. If they let you leave and waive the penalty they will lose several thousand pounds. Why should their members pay for you to get a freebie?

If payment of a new set of fees and the ERC will save you money, and you can finance elsewhere, then go for it. But don't expect any favours from Nationwide, as they don't owe you any.

Jockthearab

Welcome to MSE exiledjedi.

Unfortunately you'll have no chance of getting out without paying the ERC to Nationwide. I have just moved from them having decided to take their 5.98% 5 year fixed from 1st September 2008. I was fortunate to get the A&L 3.99% fee free min LTV 65% 5 year fixed (which is no longer available) & had to pay £2740 ERC to the Nationwide. However the maths meant that this was a worthwhile decision in my case as I will recoup this & more over the term of the mortgage.

No doubt you took the fixed for peace of mind as I did & yes it is frustrating having watched rates tumble, but who knew late last year that this would have happened?! I'd suggest you keep & eye on the deals that come available. The good ones will be posted on here by eagle eyed posters! You then have to calculate IF it is financially worthwhile for you to pay your ERC.

JtA

dunstonh

when you look stats things like these its incredible our banks are bust!!

They will be if they start refunding ERCs nilly willy.

Woby_Tide

Jockthearab wrote: »

Welcome to MSE exiledjedi.

Unfortunately you'll have no chance of getting out without paying the ERC to Nationwide. I have just moved from them having decided to take their 5.98% 5 year fixed from 1st September 2008. I was fortunate to get the A&L 3.99% fee free min LTV 65% 5 year fixed (which is no longer available) & had to pay £2740 ERC to the Nationwide. However the maths meant that this was a worthwhile decision in my case as I will recoup this & more over the term of the mortgage.

Different deal but I've just paid £4800 today to get out of a similar deal with Nationwide. Hurts like hell but by the time the Nationwide fix would end, I've recouped the £4.8k plus an extra £2.5k, I'v ethen still got an extra 18 months on a 3.99% fix. If the rates stay low, I should have stayed with Nationwide rather than A&L due to their SVR. However, much like when I took the 5 year Nationwide fix so I could control my finances for that time I took a gamble, in some ways it has failed due to the position the markets are in now. The A&L may sting me a bit for 18 months after the current deal, but for the next 3 years, the decision now makes financial sense even if upfront I appear to be nearly £5k down.