Early Repayment Fee

Nortoner

Hi all,

I took a 3 yr fixed mortgage with NatWest, understanding it is transferable if I move house.

Life changes (as it does) and I've had to change job and buy a new house this year (1 year left on the fixed rate).

NatWest won't offer me a new mortgage as I've only been in my job a couple of months (so I can't transfer the mortgage). The early repayment fee is 3% of the outstanding amount - £1500.

Is there anything I can do as I took the mortgage out as a 'transferable'. There is nothing in the paperwork I can find that says 'subject to terms'. Or, do I just have to suck it up and learn from experience?

mrginge

There is no such thing as a transferable mortgage

Nortoner

Have you not come across them before?

I wouldn't have had to pay the fee if I hadn't moved jobs, they would have transferred the mortgage to the new house. Mind you, I suppose there would have been a 'set up fee' or something for the new mortgage....I think I'm sort of seeing what you meant!!

dunstonh

Have you not come across them before?

What mrgringe is saying is that no mortgage is guaranteed to be transferable. If you meet the lending criteria then it may be possible to port the old mortgage terms to the new property. However, if you dont meet the criteria, then you cant. You were never guaranteed a transferable mortgage.

mrginge

A mortgage is attached to a house.
You move house, you get a new mortgage.
If you cant pass affordability, you dont get the new mortgage.

You are talking about the ability to transfer the rate of your existing mortgage across to a new one.