Switching Mortgage

5erge

We have a mortgage with Nationwide (fixed rate ends May 16) but we like to transfer to Santander for a better rate (get a fixed 5 year term) and to earn some 123 interest on our repayments.


Do we have to wait for our term to end or can we transfer to Santander early?


Cheers


Des

kingstreet

You can remortgage whenever you like, but if your current deal carries an early repayment penalty, it will be charged if you do so before the expiry date.

TrickyDicky101

Hi Des

If you had a 5 year fix with NW then giving your timing you are likely to have a flat (ie non-decreasing) ERC of 5% if you end the mortgage before the Fixed Term expires. This could make a remortgage very expensive indeed.

5erge

Thanks for the replies.


I called N/W and asked them how much the ERP is, it's £2146.49, so need to work out if I'd save that amount over a 5 year fixed term.


Cheers


Des

mrstick

I think you need to work out how much you would save between now and May 16, rather than over the 5 year term.

amnblog

About £268 per month saving to break even by the time you allow the time to get the swap done.