Selling on tracker mortgage

kamb1ng

Hi everyone.

I'm in the process of selling my property (moving abroad) which will take a few months to complete. My 2-year fixed deal is coming to an end on 31st Jan so I want to avoid paying SVR whilst the property is being marketed so planning to switch to a 2-year tracker with my existing lender (Nationwide).

Can I just double/triple check that once the property is sold (say in April) then I can pay back the tracker mortgage with no penalty whatsoever? The tracker product description says "no early repayment charge" and "unlimited overpayments without penalty".

What do I need to watch out for?

Many thanks for your help.

foxy-stoat

Just read the mortgage agreement word for word - if it says there are no early repayment charges then there are no charges for settling early.

As we cannot see the contract we wont be able to double or triple check your agreement - I would not like to assume that there will be no charge to exit a fixed term product though - reading the site it says there are no early repayment charges if you change your deal and you can make unlimited overpayments - but nothing about closing the product.

Good luck.

eddddy

I guess you'd want to go for a their tracker with a £0 product fee (as opposed to the one with the £999 product fee).

I guess it's worth double-checking that no other fees are payable (and that there really is no problem with repaying in full after a few weeks).

kingstreet

kamb1ng wrote: »

I can pay back the tracker mortgage with no penalty whatsoever?

Yes. That is correct.

kamb1ng

Thank you everyone for the super quick responses. I got the offer in writing and here's what it says under section 7:

7. Early Repayment

• You have the right to repay this loan early, either fully or partially. You have no early repayment charges.
• There may be a fixed £65 administration fee if you repay the mortgage and there is more than 10 years remaining on the term.

Am I right that the worst I can pay off is £65 if I pay off the mortgage a few weeks after I sign it?

kingstreet

Yes. That is also correct.

However, as an existing Nationwide borrower you are already committed to that regardless of what you now do product-wise.

If you remain on SVR instead of a tracker that £65 will still be payable on redemption.

AlexMac

You've answered your own Q, but as a fellow happy user of Nationwide as a lender, I'd say you're lucky to be with them. Today's "you and yours" R4 consumer broadcast reminded me of the scandal of "mortgage prisoners" on SVRs as bad as 6% whose lenders won't let 'em re-mortgage because in their struggle to meet payments they've fallen foul of tougher affordability criteria.

Whereas when my (lucky choice in about 2000 of an) interest-only tracker loan at a (now seemingly) amazing 0.75% over bank rate matured recently, Nationwide rang me to offer an eqaually good deal.

"Give Credit where deserved" is a phrase which I feel really applies to them (I'm not sure I deserve it!)

kamb1ng

eddddy wrote: »

I guess you'd want to go for a their tracker with a £0 product fee (as opposed to the one with the £999 product fee).

If I add the £999 fee into the mortgage (instead of upfront cash), that's also OK, right?

davidmcn

kamb1ng wrote: »

If I add the £999 fee into the mortgage (instead of upfront cash), that's also OK, right?

It just means you'd be paying it at the end rather than the start.

foxy-stoat

AlexMac wrote: »

You've answered your own Q, but as a fellow happy user of Nationwide as a lender, I'd say you're lucky to be with them. Today's "you and yours" R4 consumer broadcast reminded me of the scandal of "mortgage prisoners" on SVRs as bad as 6% whose lenders won't let 'em re-mortgage because in their struggle to meet payments they've fallen foul of tougher affordability criteria.

Whereas when my (lucky choice in about 2000 of an) interest-only tracker loan at a (now seemingly) amazing 0.75% over bank rate matured recently, Nationwide rang me to offer an eqaually good deal.

"Give Credit where deserved" is a phrase which I feel really applies to them (I'm not sure I deserve it!)

Sorry what? I don't think this helps the OP or answers any question that they have asked or will ask. Interesting point but irrelevant post.

foxy-stoat

kamb1ng wrote: »

If I add the £999 fee into the mortgage (instead of upfront cash), that's also OK, right?

Why would you want to pay another £999 to be in a product for a few months, makes no sense.