How do exit fees work 10 year fixed Nationwide?

topcat007

Hello all,

I am getting myself in a mess with exit fee calculations and understanding how they work.

on the fixed rate 10 year Nationwide fixed what exactly is the exit fee and the calculation ?


All help really appreciated as always

kingstreet

Have you got a key facts illustration?

If so, see section 10.

topcat007

kingstreet wrote: »

Have you got a key facts illustration?

If so, see section 10.

No i don't i am afraid do i just go in branch to get this?

Thank you!

kingstreet

It's a personalised illustration.

It should be possible to obtain one via a branch, online, by phone or via a broker.

It sets out the full details of the product and how it would impact you.

pinkteapot

I don't mean to sound sarcastic but ring them and ask?

They'll have a mortgage customer services number and will be able to tell you exactly what the exit fee would be for your mortgage.

Some questions are easiest put straight to the company rather than on here.

If you don't understand how they get to the number they do, tell us what they say and we'll try explaining it.

amnblog

You will be provided with a KFI Illustration before you make a decision on the product.


The fees work on a sliding scale


7% of loan to be paid within first 4 Years, Then 6% of loan to be paid for next year, Then 5% of loan to be paid for next year, Then 4% of loan to be paid for next year, Then 3% of loan to be paid for next year, Then 2% of loan to be paid for next year, Then 1% of loan to be paid for next year


This means that for the first four years then 7% figures applies on any redemption, then 6% in the next 12 months, etc.


These figures apply if you 'Overpay' (pay more that your contracted payment. Over your allowance.


An 'overpayment' is any payment in addition to the normal monthly payment and also in addition to any arrears balance currently outstanding.

Payments of capital included in your overpayments will reduce the amount on which we charge interest from the day after payment. If you make overpayments totalling more than 10% of the original loan advance amount* (the Overpayment Allowance), during the early repayment charge period(s) , you will be charged an Early Repayment
Charge. This will be based on the percentage(s) set and calculated on the amount paid in excess of the Overpayment Allowance.


If you take a 10 year product you need to be confident you won't need to redeem the mortgage unexpectedly in which case you could be hit by these fees.

TrickyDicky101

Is the sliding scale specific to the 10 yr product as when I took my 5 yr with NationWide in 2011 there was no sliding scale - it was simply 5% of the o/s balance when repaid? I know this was a change as my 2005 5 yr from NW had the sliding scale.

topcat007

amnblog wrote: »

You will be provided with a KFI Illustration before you make a decision on the product.


The fees work on a sliding scale


7% of loan to be paid within first 4 Years, Then 6% of loan to be paid for next year, Then 5% of loan to be paid for next year, Then 4% of loan to be paid for next year, Then 3% of loan to be paid for next year, Then 2% of loan to be paid for next year, Then 1% of loan to be paid for next year


This means that for the first four years then 7% figures applies on any redemption, then 6% in the next 12 months, etc.


These figures apply if you 'Overpay' (pay more that your contracted payment. Over your allowance.


An 'overpayment' is any payment in addition to the normal monthly payment and also in addition to any arrears balance currently outstanding.

Payments of capital included in your overpayments will reduce the amount on which we charge interest from the day after payment. If you make overpayments totalling more than 10% of the original loan advance amount* (the Overpayment Allowance), during the early repayment charge period(s) , you will be charged an Early Repayment
Charge. This will be based on the percentage(s) set and calculated on the amount paid in excess of the Overpayment Allowance.


If you take a 10 year product you need to be confident you won't need to redeem the mortgage unexpectedly in which case you could be hit by these fees.

Thank you very much for this really appreciated!

Just want to check my understanding very quick.

If i took mortgage for 80k and on year 5 i need to exit the mortgage (for some unforeseen reason) . I would pay 6% of the original mortgage so 4.8k?

topcat007

pinkteapot wrote: »

I don't mean to sound sarcastic but ring them and ask?

They'll have a mortgage customer services number and will be able to tell you exactly what the exit fee would be for your mortgage.

Some questions are easiest put straight to the company rather than on here.

If you don't understand how they get to the number they do, tell us what they say and we'll try explaining it.

I did try to get a in branch appointment to discuss everything and for some help. But they refuse to see me until i do the DIP online ..

so i rang there help line and they was not prepared to go through example figures to help me understand they told me to go in branch.

What stage do i get the KFI after the DIP or before?

topcat007

have found this which is really helpful so DIP is after application

http://www.halifax.co.uk/mortgages/first-time-buyers/?pagetabs=0#interest-back

Thanks all!

pollyanna24

TrickyDicky101 wrote: »

Is the sliding scale specific to the 10 yr product as when I took my 5 yr with NationWide in 2011 there was no sliding scale - it was simply 5% of the o/s balance when repaid? I know this was a change as my 2005 5 yr from NW had the sliding scale.

This is what I was going to say.

When I took out my mortgage in 2006, I took a fixed rate for 2 years with a sliding scale.

In 2008, when I fixed again for 5 years, it was simply 5% of the outstanding balance.