avoiding a mortgage penalty charge for good reason

lottylostitch

Hello


looking for some advice. We recently went to NatWest for a mortgage and we were approved until the underwriter declined us.


We then went to the Abby and they have given us an amazing deal.


Can I avoid a penalty charge considering the fact I am already with NatWest for my current mortgage and that another high street lender has approved me so the fee should be waived? Plus their customer service has been disgraceful.


Any thoughts and advice would be welcomed.

angelsmomma

Do you mean avoid an early repayment charge on redeeming the mortgage to go with Abbey? if so I doubt it, that was a part of your original mortgage agreement.

lottylostitch

sorry yes I am no that clued up on the terminology its a charge for pulling out of the contract with them to move over to another lender. Natwest are referring to it as an early repayment charge .

kingstreet

An early repayment charge is levied because you are repaying the lender, by moving your mortgage to a new lender or moving house and cannot get a new mortgage with the same lender or have chosen not to do so.

The charge reimburses the market counterparty which provided the rate-swap which funded your fix/discount/tracker with NatWest. The lender has to pay this charge, so the only way it can recoup the cost is to pass it on to you.

As lenders give no guarantee they will lend to you again and the ability to port is based on your ability to meet the lender's affordability, criteria and valuation requirements, your inability to get a new NatWest mortgage does not enable you to avoid your responsibility to pay the charge.

When your solicitor requests a redemption figure form NatWest, the charge will be included.

lottylostitch

hiya


I am not that clued up on the terminology but NatWest are referring to as an early repayment charge, as I will be switching mortgage lenders

lottylostitch

thank you for all the comments I think I am more annoyed with them for the fact of them messing me around for over a month and now don't even returning my calls and emails and then they want more money from me. Natwest are adamant I can have a mortgage but their underwriters say no. But I can see they are perhaps two different scenarios


Looks like I will have to fork out the muller

kingstreet

lottylostitch wrote: »

hiya


I am not that clued up on the terminology but NatWest are referring to as an early repayment charge, as I will be switching mortgage lenders

That is exactly what I was referring to and yes, it will be payable if you leave within the period specified in your original key facts illustration or mortgage offer, regardless of NatWest's willingness to lend to you again, or not.

[Deleted User]

lottylostitch wrote: »

Looks like I will have to fork out the muller

I think you mean 'moolah'. Muller is a brand of yoghurt, and you wouldn't use a fork for that. It would take ages.

Thrugelmir

lottylostitch wrote: »

Natwest are adamant I can have a mortgage but their underwriters say no.

Only people with the authority to offer you a mortgage are the underwriters.

Any other quote you receive will have a "subject to" provision.

lottylostitch

that made me laugh at least someone made me smile today

kingstreet

Deleted_User wrote: »

I think you mean 'moolah'. Muller is a brand of yoghurt, and you wouldn't use a fork for that. It would take ages.

I can honestly say, that is a post I never expected to see on MSE and have quoted it for future posterity.

No, prosperity...

or did I really mean propensity or proclivity...?

Damned if I know! :eek: