Early Repayment Penalty - Any way out?

Lindy99

Hi...We're 3 years into a 5 year fix with Nat West. If we repay now there is a penalty of several thousnd pounds. Is there any way out of paying this? Thanks

Phoenix79_2

You mean a loan?

Ring up and get a settlement figure and see if it sounds right.

going2die_rich

If you are talking about a mortgage, there aren't ways out of the early repayment penalty - hence the reason they exist. It's to at least recoup some of the cost of giving you incentives for that mortgage in the first place.

As I understand it the only ways to not have to pay is if you die... although that might vary on each policy, but I am sure you don't particular want to die to avoid payment

If the reason you want to leave that mortgage is to get a mortgage for somewhere else, then you may be able to tranfer your mortgage product with a reduction/no cost but would have to stay with Natwest. It's called porting your mortgage product. But you'd have to ask Natwest directly.

If it's another lender you want or have the cash to payup then you either pay the penalty or wait the 2 years. If it is that you've got extra money to pay off your mortgage with then check if your policy allows overpayments,, at least that will reduce the interest amount to pay back if you are stuck in it for another 2 years.

Hope this helps,

askakd

If its any help I have just been successful in reclaiming my Early Repayment Charge from A&L - I argued that it was an excessive penalty for breach of contract and as such was unlawful and unenforceable

I know this doesn't help in your case but you could try the argument as to why you shouldn't pay it in the first place