Avoiding earlier redemption

m0bov

Hi, I am with the Nationwide, the fixed rate deal ends Jan 31st. I was under the impression I can move and take out a new mortgage elsewhere up to 2 months before. My broker has arranged a new mortgage for me, I just paid for the valuation.

I had a letter from my sol today with the settlement and I have been stung for 3k+ for redemption.

What are my options? Does my broker look at keeping Nationwide? Or should I ask for Exchange/Completion after 31st Jan? :mad:

muhandis

I'm surprised that your broker arranged a remo where you'd be charged an early redemption fee. Surely he should have known better than you as to what NW's policy is.

m0bov wrote: »

Hi, I am with the Nationwide, the fixed rate deal ends Jan 31st. I was under the impression I can move and take out a new mortgage elsewhere up to 2 months before. My broker has arranged a new mortgage for me, I just paid for the valuation.

I had a letter from my sol today with the settlement and I have been stung for 3k+ for redemption.

What are my options? Does my broker look at keeping Nationwide? Or should I ask for Exchange/Completion after 31st Jan? :mad:

ACG

Delay completion until after your ERC period ends and you will be fine.

Difficult to say whos fault this is, did you give the wrong date? Mortgage offers are normally valid for 3 months so I am sure you will be fine.

Thrugelmir

m0bov wrote: »

I was under the impression I can move and take out a new mortgage elsewhere up to 2 months before.

Where did you obtain this information from?

m0bov

I'm sure I read it on Nationwide's site. Anyway, its unlikely I will complete before Feb anyway. I find brokers tend to just go on what you tell them. Anyway, it all seems fine at the moment.

Imma_Number

http://www.nationwide.co.uk/support/support-articles/manage-your-account/mortgage-early-repayment/early-repayment-overview

You will not be charged an ERC if:

• you’re on our Base Mortgage Rate (BMR), Standard Mortgage Rate (SMR) or certain Tracker products (please check your original mortgage offer)
• you’re taking all your existing Nationwide mortgage with you to a new property, and completing the sale of your existing property and the purchase of your new property on the same day (porting your mortgage)
• you have the option to ‘switch and fix’ on your current mortgage and are switching to a new Nationwide fixed rate product
• you switch to a new Nationwide product within the last three months of your existing deal
• your mortgage is paid off due to a bereavement or a critical illness claim
• your endowment policy matures during the benefit period and you use this to pay off your interest only mortgage (or the interest only part of your part and part mortgage).

Thrugelmir

m0bov wrote: »

I'm sure I read it on Nationwide's site. Anyway, its unlikely I will complete before Feb anyway. I find brokers tend to just go on what you tell them. Anyway, it all seems fine at the moment.

The issue is that you are moving away from the NW to a new lender.

getmore4less

How much better was the new deal over a retention deal from Nationwide?

not123

Hi there,
we remortgaged today (from Nationwide to different lender). Our Nationwide mortgage (fix rate) expires on 31.12.2016, but ERC is not charged from 1st December 2016. You can complete 1 month before the end of your deal (if different lender), 3 months if you stay with Nationwide.