Early repayment

leereni

I bought my first house about 20 months ago using the government Newbuy scheme. Unfortunately, due to being on the scheme our interest rate is fairly high at 4.6%.

I am looking at upsizing and due to my home going up in value I now have about £60000 equity. I bought it for £197000. My mortgage is with nationwide.

My question is, how much approximately would I have to spend on early repayment fees? Should I just port the mortgage? I still have another 3 years left on this deal.

Mallotum_X

Your mortgage agreement will set out the penalties.

leereni

Thanks, however it's not clear.

Mortgage agreement states if I repay the mortgage in full and the date of the repayment is between month 13 - 24 (when I'm looking at selling) the basis of charge will be 5% of the amount repaid and then states Amount of Charge £9358.

Can someone please explain?

[Deleted User]

So you've paid off some of the mortgage, and have £187k left on the mortgage. If you repay early, you pay 5% of the 187k = £9358.

Have a look at your T&Cs to see whether you can port for free/for a fee/not at all. If not sure, call Nationwide and ask.

Mr_8o8

I'd recommend calling your mortgage provider and asking them what the early repayment fee would be. Natwest worked it out for me over the phone

leereni

Thanks Cherry.

Yes the original repayment was 187000, however we have been making repayments for 20 months now and therefore it's a bit less. But I understand how it is worked out now. That 5% seems a bit high.

Yes I can port I think for free but wanted to get out of the deal as the rate is a bit high. Don't think its worth paying the ERCs of about 8000-9000 though