Early Repayment Charge

TheLeonC

Hello!

I am completing on my house sale on Friday, unfortunately I’m completing before my mortgage deals ends, so was expecting to pay an ERC, but on our latest redemption statement from Nationwide it says £0 for ERC, when I sign into my account it also says £0. I called nationwide out of honesty as I didn’t want to get hit with it further down the line, and they couldn’t work out why it was £0, eventually after going through 2 teams they said they need to raise it for investigation. 

My question is, if it says 0 on my account and on their end and on my redemption statement, do I really need to be paying it? I feel like they are trying to find a way of me having to pay it by escalating it through different teams!

Ayr_Rage

Conversely it sounds as if you are now trying to get out of paying a charge that you were expecting.

Mistakes happen.

TheLeonC

Ayr_Rage said:

Conversely it sounds as if you are now trying to get out of paying a charge that you were expecting.

Mistakes happen.

Absolutely! I think I need the money more than Nationwide😂

user1977

What do the terms of your deal say about an ERC? 

ACG

Systems can have errors. 
Terms and conditions legally hold more weight. 

That being said, if you took it to the ombudsman as a complaint, I honestly dont know where it would fall. 

Hoenir

ACG said:

That being said, if you took it to the ombudsman as a complaint, I honestly dont know where it would fall. 

The ombudsman doesn't have power to override a legal contract. 

Customer facing service agents aren't going to be able explan technical issues within the system. 

ACG

Hoenir said:

ACG said:

That being said, if you took it to the ombudsman as a complaint, I honestly dont know where it would fall. 

The ombudsman doesn't have power to override a legal contract. 

Customer facing service agents aren't going to be able explan technical issues within the system. 

This is quoted from the link below:

The rules are different for financial businesses. If a consumer accepts our final decision, then the decision is legally binding on the financial business. It can't simply withdraw from the process. 

https://www.financial-ombudsman.org.uk/who-we-are/make-decisions

If the FOS sides with the customer, that decision does become legally binding on the lender.

kingstreet

If you're in the final three months of a product, you can sometimes find the lender will allow you to choose a new rate without penalty. That wouldn't usually apply to a full redemption though.