Guidance on Change or rate and term with early reception charge-Nationwide

Firsttimebuyer_25

Hello,

My fix with Nationwide is due to end April next year, and I would rather pay my ERC now and refix than go through a few more base rate increases before I can.

Is anyone aware of the process for this with Nationwide as I want to fully understand this.

And recommendations of a good broker, as the anxiety of doing my last application nearly killed me!

All help appreciated from you wonderful people, who always offer such knowledge 

K_S

Firsttimebuyer_25 said:

Hello,

My fix with Nationwide is due to end April next year, and I would rather pay my ERC now and refix than go through a few more base rate increases before I can.

Is anyone aware of the process for this with Nationwide as I want to fully understand this.

And recommendations of a good broker, as the anxiety of doing my last application nearly killed me!

All help appreciated from you wonderful people, who always offer such knowledge 

@firsttimebuyer25 Afaik, Nationwide does not allow brokers to do the rate-switch if you are more than 5 months away from the end of a fix and an ERC is involved. So you'll need to speak to Nationwide. I have no experience of the process but off of the top of my head (based on what I think I saw on the forum) it involves an telephone appointment with Nationwide.

If your fix is ending 30 April 2023, you're not too far off from being able to 'secure' a remortgage rate with mainstream lenders that will do 6+1 months validity, or 6+3 months and even 6+6 months (this is anecdotal from other brokers, I haven't done this for any clients myself) for remortgage offers allowing you to keep the original product. If your ERC is sizeable, it may be worth considering.

Hopefully someone who has paid an ERC and done a Nationwide product switch recently will comment.

newbieFTB

I was in a similar situation but in the end I waited until I could switch without penalty rather than paying the EPC, you can actually secure the rate 5 months ahead of your end date - so around November/December time based on your mention of April.

https://forums.moneysavingexpert.com/discussion/5999210/nationwide-now-switch-within-5-months-of-end-instead-of-3

The 5 months isn't the actual date you took the mortage out but the date on the mortage paperwork that it says the fixed rate expires eg my paperwork said the rate expires 31st August yet the start date of my mortage was actually the middle of August.

I was able to rate switch 01/04/2022 for my mortgage which was expiring 31/08/2022, the rate I switched to was better so I started it as soon as allowable which was 3 months before the end date, 01/06/2022. If the rate was worse I could have started it later on 01/08/2022.

Firsttimebuyer_25

Thanks for this!

I am def in a doom monger space and really want to see if I can secure something before the September Bank of England review, so thinking paying the ERC may be beneficial, and I’m not wanting to have to go through months of process so possibly preferring to stay with Nationwide (despite an excellent credit rating anything to do with mortgages make me really anxious!)