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NatWest ERC

Hi, hopefully this is the right forum for this question/issue. 

I have just moved house, completing on Friday 31st Jan. 

I was on a 2 year fixed rate with NatWest, which was due to end on 31st Jan.
I did not port the mortgage, but took out a new product, still with NatWest 

My mortgage broker advised me to complete on or before the 31st to avoid going on to the SVR. 
There was no inherent need to complete by the 31st, and it was only arranged due to advise from the broker. 
During completion it came to light that I would be liable for an early repayment charge of over £1500, as I was technically still in the fixed rate period. 
I have had to pay this to ensure I could complete on my new home. 

My broker is telling me that there should be no ERC as I was taking a new product with NatWest, and I was in a ‘roll down period’ (is there such a thing), but NatWest say otherwise. 

My solicitors have also been quite useless during the whole process, with a litany of errors, the main one in my eyes being that they did not send me the mortgage redemption statement when they received it, which clearly states the ERC is due until 31st January. 

I guess I’m looking for help with advice on Roll down periods and whether I can reclaim this money, and if I have any recourse against my mortgage broker or solicitor for bad/incorrect advise. 

Many thanks 



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Comments

  • Hoenir
    Hoenir Posts: 5,604 Forumite
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    edited 4 February at 6:34PM
    Your solicitor's role is to handle the legal aspects not provide mortgage advice. Completion date should have been fixed for the first working day after the existing product ended. 
  • dan23uk
    dan23uk Posts: 122 Forumite
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    edited 4 February at 6:38PM
    Hoenir said:
    Your solicitor's role is to handle the legal aspects not provide mortgage advice. Completion date should have been fixed for the first working day after the existing product ended. 
    I appreciate that. But surely they should be sending on important documents such as a mortgage redemption statement. 

    I also had a balancing payment to make to them, which I was told included the ERC, yet they have now emailed me informing me this wasn’t included 
  • saajan_12
    saajan_12 Posts: 4,447 Forumite
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    dan23uk said:
    Hoenir said:
    Your solicitor's role is to handle the legal aspects not provide mortgage advice. Completion date should have been fixed for the first working day after the existing product ended. 
    I appreciate that. But surely they should be sending on important documents such as a mortgage redemption statement. 

    I also had a balancing payment to make to them, which I was told included the ERC, yet they have now emailed me informing me this wasn’t included 
    What exactly did the redemption statement cover though? If it was after exchange, then there's nothing you could really have done about it anyway. If there was a long enough gap from when it was generated to actual completion, then these are often just a point in time calc, with the expectation that things like ERCs would be corrected afterwards based on what you (or mortgage broker) knows about the product. 

    dan23uk said:
    My mortgage broker advised me to complete on or before the 31st to avoid going on to the SVR. 
    There was no inherent need to complete by the 31st, and it was only arranged due to advise from the broker. 
    IMO this was poor guidance - being on the SVR for a day means paying a high interest rate / 365, ie still a small amount. So I wouldn't see 'going onto the SVR' for a short period as something to avoid. Meanwhile it does mean you're within the fixed term, which may or may not have roll down periods or a concession if you're taking out a product with the same lender. Those two things aren't universal so I would have checked specifically. 

    Not sure if that would amount to a claim as the broker will likely have several disclaimers on you needing to check everything, but logically I think the above thinking has lead to this issue. 

    dan23uk said:
    My broker is telling me that there should be no ERC as I was taking a new product with NatWest, and I was in a ‘roll down period’ (is there such a thing), but NatWest say otherwise. 

    If I were you I'd dig out the original documents received from NW about your first mortgage and its T&Cs - should mention there whether the ERC is waived if you take a new mortgage with them. 
  • dan23uk
    dan23uk Posts: 122 Forumite
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    This is the email from my broker when I queried the ERC with him 
  • ACG
    ACG Posts: 24,216 Forumite
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    First thought is that the broker should be trying to resolve this.

    From a common sense approach you would like to think natwest would waive the ERC (I dont know whether or not they should have). As a broker, my initial thought would have been to say AFTER the 31st, but I honestly dont know whether there is a scheme to avoid the ERC or not if moving home). 

    My second thought is if that fails, do you have anything in writing that confirms they told you to complete by the 31st? From the way you describe it (obviously we only have your version of events), it sounds like the broker is at fault. But unless you have something in writing, its a case of he said/she said. 

    The solicitors normally ask when you want to complete, presumably you said by the 31st of Jan. I think in that instance its a tough ask to blame them as they did what you asked. But I can see your point about them raising the ERC issue prior to completion. 

    Obviously if natwest do have something in place that says they will waive the ERC if taking out a new product then all is fine. It sounds like the broker was trying to do the right thing and save you money, but got it wrong. One way or another, I am sure this will be put right, but it might be a bit of a headache in the meantime. 

    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ellen_vannin
    ellen_vannin Posts: 415 Forumite
    Ninth Anniversary 100 Posts
    Banks do have some leeway sometimes. Might be worth asking a manager in person whether they will waive the charge for early redemption as essentially only a few hours early.
  • ACG
    ACG Posts: 24,216 Forumite
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    dan23uk said:



    This is the email from my broker when I queried the ERC with him 
    This sounds promising then. 
    Sorry, I have only just seen this. You must have posted it whilst I was typing. 

    See how you get on but it looks positive. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Hoenir
    Hoenir Posts: 5,604 Forumite
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    edited 4 February at 8:26PM
    dan23uk said:



    This is the email from my broker when I queried the ERC with him 
    The answer to your question appears to be contained above.  Probable that the ERC is initially paid but then subsequently refunded as a matter of policy by the NatWest.  No one has done anything wrong. There's a process to be followed. 
  • kingstreet
    kingstreet Posts: 39,108 Forumite
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    NatWest criteria;-

    "At the time of a purchase application, where the customer’s existing mortgage rate is within 4 calendar months of the end date (expiry), they can take a new business rate on the whole mortgage. They must be within this 4 month period on the date the application is submitted. 
    • If the redemption and completion is simultaneous then no ERC would be paid."
    The question is, did you apply inside the four month window?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • dan23uk
    dan23uk Posts: 122 Forumite
    Part of the Furniture 100 Posts Name Dropper
    NatWest criteria;-

    "At the time of a purchase application, where the customer’s existing mortgage rate is within 4 calendar months of the end date (expiry), they can take a new business rate on the whole mortgage. They must be within this 4 month period on the date the application is submitted. 
    • If the redemption and completion is simultaneous then no ERC would be paid."
    The question is, did you apply inside the four month window?
    Thank you for this. 
    The application was made at the end of November, so well within the 4 months.
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