Anyone had success negotiating a reduction in ERC with Natwest?

Avgeek

I'm selling up soon but only 2 and a bit years into a 5 year deal with Natwest. Around £120k outstanding and ERC of 3% would be £3600. Has anyone had the nerve to ask for a reduction in the ERC? Just a thought that someone gave me the other day, but I'm not much of a barterer so wouldn't normally ask.

dimbo61

No your lender will point out the terms and conditions you signed up too.
Maybe if you have a spare £12,000 you could pay off the 10% if allowed before selling the property and paying off the other £108,000 and 3% of the outstanding balance 
Not sure this will work 

Seashell517

Why do you think it's a negotiation? You owe the ERC, so why would the bank agree not to charge you it?

Avgeek

dimbo61 said:

No your lender will point out the terms and conditions you signed up too.
Maybe if you have a spare £12,000 you could pay off the 10% if allowed before selling the property and paying off the other £108,000 and 3% of the outstanding balance 
Not sure this will work 

Yes, that should be part of the plan to try and reduce it. I'm well aware of the terms and conditions I signed up for - of course I am - my IFA suggested I ask. As I say, I wouldn't normally.

K_S

Avgeek said:

I'm selling up soon but only 2 and a bit years into a 5 year deal with Natwest. Around £120k outstanding and ERC of 3% would be £3600. Has anyone had the nerve to ask for a reduction in the ERC? Just a thought that someone gave me the other day, but I'm not much of a barterer so wouldn't normally ask.

@avgeek High ERCs from breaking 5+ year fixes is very much part of their revenue stream and they won't let it go without good reason.

On the rare occasions I've seen lenders waive/reduce an ERC, it's most often been in response to a complaint where the lender has made a mistake or failed badly on customer service. On a couple of ocassions it's been for compassionate reasons.