Paying off mortgage at end of mortgage deal

OctoberQuest

I have talked to Natwest and want to double check what I have been told because I found it surprising. Background: I have £103,820.04 remaining, 14 years, 1.74% fixed ending 31/03/2023. I have enough savings to pay off the mortgage.

Please confirm that:

1. I can pay off my mortgage without any Early Repayment Charge at the end of my mortgage deal in March

2. I can agree to a new mortgage deal today with Natwest to lock in a rate and it doesn't represent a commitment. I can still change the deal or pay off the mortgage without ERC before the new deal starts.

I had assumed that an ERC applied to any overpayment during the 14 year term not just the mortgage deal and I assumed that as soon as I picked a new deal, I would be locked into the 2 or 5 years or whatever so I just want to be 100% sure this is right.

thanks!

biscan25

OctoberQuest said:

I have talked to Natwest and want to double check what I have been told because I found it surprising. Background: I have £103,820.04 remaining, 14 years, 1.74% fixed ending 31/03/2023. I have enough savings to pay off the mortgage.

Please confirm that:

1. I can pay off my mortgage without any Early Repayment Charge at the end of my mortgage deal in March

2. I can agree to a new mortgage deal today with Natwest to lock in a rate and it doesn't represent a commitment. I can still change the deal or pay off the mortgage without ERC before the new deal starts.

I had assumed that an ERC applied to any overpayment during the 14 year term not just the mortgage deal and I assumed that as soon as I picked a new deal, I would be locked into the 2 or 5 years or whatever so I just want to be 100% sure this is right.

thanks!

1. Yes- Although some have a completion fee of £50 or something like that.
2. Hmm- I thought I was committing once I'd signed the forms for the product transfer.
When you start the next product it will come with a new ERC, until that new fixed rate finishes.

OctoberQuest

Thanks!

> I thought I was committing once I'd signed the forms for the product transfer.

I can't remember the process of agreeing to a new deal. If you do it 6 months out, when do you sign the forms? Is that just before the deal actually starts? I can't remember signing forms last time I renewed my mortgage... probably because it was just a trivial chore and not memorable lol.