Paying off mortgage at end of fixed rate help?

hay77

Hi
I initially took out a 13 year mortgage with Nationwide fixed for 5 years. I have been overpaying since day one. The fixed rate ends in February 2017 and I am in the fortunate position that I could pay it off then. I have heard that if I pay it all off during the last month of the fixed rate then I won't occur any charges. Does anyone know if this is correct? Thanks for any responses. I have a lot of thinking to do!

kingstreet

I haven't heard that. You should check with the lender, as it is a specific question.

In general, I would suggest you make any repayment the day after the penalty ends, just to be on the safe side.

r192

I know with certain lenders I deal with they allow you to pay of within the last 30:days with no charge, if I was you give them a quick call and ask for them to confirm in writing if they say yes you can just so you have proof if they try and argue the toss at a later date

Imma_Number

http://www.nationwide.co.uk/support/support-articles/manage-your-account/mortgage-early-repayment/early-repayment-overview
You may be charged an ERC when:

• you pay off your mortgage before your current deal ends (for example by moving to another lender or by paying off a lump sum)
• ...

Pay it off the day after like Kingstreet says.
It may cost you a few pounds in interest but will save you many times that in early repayment charge.

not123

Hi there,
we remortgaged recently (from Nationwide to new lender). Our 5-years fixed rate run until 31/12/2016. However - as no ERC were charged from the 1st December 2016, we remortgaged on the 8th.

The easiest think (which I could recommend) is to request a redemption statement on (or few days before) 1st February 2017.

Our redemption statement (we requested it on 22nd November 2016) was showing this info:
- balance at December 2015 (without interest)
- interest
- all payment made within 2016
- total amount to redeem on 1st December 2016
- daily interest charge (must be added to the redemption figure for each day after the specified date the account is not redeemed. We paid interest charge for days 1 - 7 December, 8th December mortgage was paid off)