Nationwide Early Redemption

dwill1503

We are considering selling our house and paying off mortgage and sitting on/investing cash for a few years (approx £110k) as Nationwide won't let us port the mortgage to a property of the same price elsewhere.

So, having checked our NW mortgage paperwork given to us 8 years ago, it looks like all we have to pay is the Redemption Admin Fee of £90. But having searched online we have seen some mortgages have a fee that runs into thousands. What would the early redemption fee be called other than the "fee"? It just says "total amount payable on 31 Dec £95k." Which is approx the mortgage balance.

kingstreet

The redemption/discharge/deeds release fee is payable whenever the mortgage is repaid. It doesn't matter if it's early, or at the end of the mortgage term.

If you repay the mortgage during a fixed or tracker rate period, you may also have an early repayment penalty to pay.

If you look at your original mortgage offer or key facts illustration, these should be visible in sections 8 and 10/11.

dwill1503

Thanks Kingstreet. Yes it says "Early repayment charges payable in first two years". which was 1.5%

kingstreet

So if you are still in the period this applies, 1.5% of the balance would be added to the balance, plus £90 to settle the account on the date the sale completes and the solicitor repays the mortgage.

If it has expired, it will be £90 added only.

Your solicitor will send you a copy of the redemption statement for checking in advance of completion.

dwill1503

Ok, great, thank you. The mortgage was taken out 8 years ago so it looks like it is just the £90

kingstreet

It could be based on when the mortgage was first taken out, but a new period would apply if you took another fix or tracker from the lender in the last few years.

Your annual mortgage statement will tell you if any early repayment penalty is payable and the date it ends.