Nationwide Early Redemption Fee

cliqt

Hello, I'm wondering if anyone has ever managed to get a reduction on the 5% redemption fee that Nationwide charges on getting out of a 5 year fixed rate mortgage? I'm in year 4 of the 5 year fix and I'm fuming that it's going to cost me so much to get out of it. I realise it was in the T&Cs but I'm still really cross about it. I'm not getting out of the mortgage to take a cheaper option, we're selling our house and moving into rented accommodation. Thanks.

[Deleted User]

I think the % fee decreases with the term, for example 1 year in would be 4% fee and so on, so I'm guessing you would have 1% early redemption fees now, not the whole 5%?


That's how NatWest do it anyway.

kingstreet

Some older Nationwide products are 5/5/5/5/5 not 5/4/3/2/1 as they are now dalo.

OP you are unlikely to be able to avoid such penalties even though current products do not include the same restrictions.

Lemonsqueezer78

ERCs are very difficult to dodge I'm afraid. They are legal, clearly spelled out in the mortgage terms - and there is very little incentive for a lender to just give a customer that is leaving a "goodwill" gesture....

Yorkie1

On a fixed rate mortgage, the lender incurs a contractual charge from the organisation it borrowed the funds from if the funds are repaid early by the borrower - the ERC works to reimburse the lender for that charge.

Thrugelmir

cliqt wrote: »

I realise it was in the T&Cs but I'm still really cross about it.

Little point in getting cross. Sometimes in life you just have to accept it and move on. Your reason for selling has no bearing.

ACG

Do you have to sell?
Can you get consent to let for a year?

Jhoney_2

cliqt wrote: »

Hello, I'm wondering if anyone has ever managed to get a reduction on the 5% redemption fee that Nationwide charges on getting out of a 5 year fixed rate mortgage? I'm in year 4 of the 5 year fix and I'm fuming that it's going to cost me so much to get out of it. I realise it was in the T&Cs but I'm still really cross about it. I'm not getting out of the mortgage to take a cheaper option, we're selling our house and moving into rented accommodation. Thanks.

I appreciate that it's inconvenient OP, but how is that their fault?

If you were staying put and they suddenly reneged on the last year of your fix in favour of e.g charging you a higher rate, wouldn't you say no way!