Help, early repayment charge

harrybarber9

Hi there,

I wonder if anyone can provide some advice of what I can do.

At the time my current mortgage was with Nationwide and we planned on buying a new property so applied for a new mortgage with Nationwide which included 'porting' my current mortgage across.

My circumstances then changed and I took out a new mortgage with Natwest and their appointed solicitor transferred my then current mortgage to their new product.

2 months later I receive a letter from Nationwide asking for a early repayment charge as they didn't include it on the closing statement as they thought I was porting across.

Any advice what I can do here as i simply don't have the money they are asking for?

kingstreet

You knew "porting" meant no ERC would be charged, so how/why did you think a remortgage to NatWest would be penalty-free when no ERP was charged?

The penalty you would have paid is either equity in your home, or money you have paid to a third party (we are unable to establish who, as you haven't told us the reason for the remortgage to NatWest).

A failure to request the ERC at the time does not absolve you of the responsibility to pay it, unless you can prove the lender was negligent in some way.

harrybarber9

Hi, the Natwest remortgage was a BTL in the end so I was releasing equity. I think my point here is that when the solicitor requested a closing statement everything was included in it and the equity was released to me. Not to receive a letter 2 months later which says 'oh we forgot to add it' - can we have it please?

I have no visibility of the closing statement so presumed wrongly that it would be correct.

ThePants999

I'm surprised you didn't see your redemption statement. That was one of the first documents my solicitor sent to me.

But if your redemption statement was based on information you provided ("we're porting the existing mortgage") that subsequently turned out to be incorrect, I'm not sure why you think this is their mistake.

harrybarber9

ThePants999 wrote: »

But if your redemption statement was based on information you provided ("we're porting the existing mortgage") that subsequently turned out to be incorrect, I'm not sure why you think this is their mistake.

Didn't supply any information to them, Natwest appointed them to execute the transaction for them - they weren't really my solicitors and repeatedly told they don't provide advice etc just execute the deal

kingstreet

harrybarber9 wrote: »

Hi, the Natwest remortgage was a BTL in the end so I was releasing equity. I think my point here is that when the solicitor requested a closing statement everything was included in it and the equity was released to me. Not to receive a letter 2 months later which says 'oh we forgot to add it' - can we have it please?

I have no visibility of the closing statement so presumed wrongly that it would be correct.

So you did a let to buy remortgage? Did you buy a new property immediately? If so, which lender provided the mortgage for the onward purchase?

The solicitor acting for your new remortgage lender should have asked you about ERCs, when they would end and should have provided a copy of the redemption statement provided to them by Nationwide, in advance of completion of the remortgage.

As I said, you were aware of the lack of ERC on a port so you should have been aware of the missing ERC, or increased residue from the solicitor to you following the remortgage.

Let's face it, if you think you are getting £70k and £75k appears in your bank account, you know, or should know, there is something wrong somewhere.

An error by a financial institution does not, and should not, (IMHO) automatically mean the error results in a loss to the institution which it should simply grin and bear it...