What should I expect…?

Dani1985

So I’ve bitten the bullet and remortgaged a year early to pay off my help to buy (£90k) my initial 5 year mortgage runs out in April 1st 2023. I have a help to redemption statement which lasts 3 months from 9th August then I can get my RICs survey re-keyed free so it could take me up to the 9th feb. If I wait til feb to complete I won’t be paying my increased mortgage (which has gone up £620 per month!! Due to increasing the mortgage £90k and the rate increases) til then. Will NatWest charge me a whole 1% of my ERC for 2 months? Approx £3000 

im hoping I’ve made the right decision as interest rates appear to be going up and up… 

K_S

@dani1985 Not sure if I understood the question correctly but if you're asking whether NatWest will charge the whole ERC until the final day of the fix (31/03/2023?), the answer is yes.

Is there any reason you didn't try to get an offer from a mainstream lender that gave you sufficient validity (with extension) to get you past the ERC date? There are mainstream lenders that have remortgage offers with validity of 6 months + 2/3/6 months which could've got you past the fix end. 

Dani1985 said:

So I’ve bitten the bullet and remortgaged a year early to pay off my help to buy (£90k) my initial 5 year mortgage runs out in April 1st 2023. I have a help to redemption statement which lasts 3 months from 9th August then I can get my RICs survey re-keyed free so it could take me up to the 9th feb. If I wait til feb to complete I won’t be paying my increased mortgage (which has gone up £620 per month!! Due to increasing the mortgage £90k and the rate increases) til then. Will NatWest charge me a whole 1% of my ERC for 2 months? Approx £3000 

im hoping I’ve made the right decision as interest rates appear to be going up and up… 

Dani1985

Hey thanks for replying, yes that’s what I meant, I wasn’t sure if the early redemption charge dropped down even further the closer it got to the expiry date. In all honestly my house was a new build and o actually thought my 5years fixed started the day I completed in Aug not the day my mortgage was offered in April so it’s only recently I’ve realised how close I am to it, my new mortgage is with HSBC could i get an extension with them? My other problem is my help to buy redemption will of expired so I’d have to pay for another RICS survey