Natwest 5 year fixed rate but being told only 4.5 years?

LEELEE

Hi all, 
Wanted to see if anyone else had faced this issue, we signed up for a NatWest 5-year fixed rate mortgage in 2020, 1st payment was taken on April 1st, 2020, so we assumed rightly or wrongly the mortgage would finish 5 years later in March/April 2025, basic maths and all that.

Having phoned them yesterday they advised my 5-year fixed rate would finish on the 31/10/2024 which for us is a full 5-6 months before the 5-year term, is this right and have others faced this issue?

Having had a few mortgages before we have never heard or see this premptive termination of our 5-year fixed rate which is obviously very good to whatever their variable is at the end of 2024. 

Any help or advise or experiences from others very welcome. 

Thanks, and have a good day.

user1977

Yes, this is normal. The bank borrows the money wholesale with a fixed end date no matter when the customers' individual completion dates are, so "5 years" just means "5-ish". The actual end date will have been in all the paperwork.

housebuyer143

LEELEE said:

Hi all, 
Wanted to see if anyone else had faced this issue, we signed up for a NatWest 5-year fixed rate mortgage in 2020, 1st payment was taken on April 1st, 2020, so we assumed rightly or wrongly the mortgage would finish 5 years later in March/April 2025, basic maths and all that.

Having phoned them yesterday they advised my 5-year fixed rate would finish on the 31/10/2024 which for us is a full 5-6 months before the 5-year term, is this right and have others faced this issue?

Having had a few mortgages before we have never heard or see this premptive termination of our 5-year fixed rate which is obviously very good to whatever their variable is at the end of 2024. 

Any help or advise or experiences from others very welcome. 

Thanks, and have a good day.

NatWest always has set end dates. You either get more or less than the specific term depending when you redeem the mortgage.

LEELEE

Thanks all for this information, much appreciated 

penners324

You would have signed a document with the finish date on it

ACG

penners324 said:

You would have signed a document with the finish date on it

You dont sign mortgage offers with natwest, not via a broker at least. 

But to answer the question, the illustration and offer would have both confirmed how long your rate is fixed for. Natwest work to fixed end dates, so that may mean a little under or over  the 2/3/5 year fixed rate period. Its not uncommon with high street lenders. 

dunstonh

Wanted to see if anyone else had faced this issue, we signed up for a NatWest 5-year fixed rate mortgage in 2020, 1st payment was taken on April 1st, 2020, so we assumed rightly or wrongly the mortgage would finish 5 years later in March/April 2025, basic maths and all that.

 Fixed rate deals are issued in tranches.  Each tranche will have a fixed rate finishing on a specific date in the future.   If your mortgage is advanced early into the tranche availability, you would get longer than 5 years.  If it is advanced late in the tranche availability, you will get less than 5 years.   If your house purchase takes a long time, then its more likely you will get less than the headline period.

Having had a few mortgages before we have never heard or see this premptive termination of our 5-year fixed rate which is obviously very good to whatever their variable is at the end of 2024. 

You should have seen it with virtually every other fixed rate mortgage you have had.  You probably just didn't notice it before.  Maybe previous ones were only days or weeks out.