Help with costs fee from NR

gem1979_2

I'm in the process of re-mortgaging as our NR deal comes to an end on the 01/06/2008. They've taken 2 weeks to send me an exit summary which includes £1000 "help with costs fee" on top of a £250 exit fee. They wrote to us as our mortgage deal was coming to an end and basically said to go elsewhere as they couldn't provide us with a competitive deal. Can they still charge this fee then if they're recommending we leave? Not quite clear what this fee is actually for Is this something our new provider might cover like exit fees? Any advice would be much appreciated.

UK007BullDog

If you leave before your mortgage deal finishes you have to pay that fee. Afterwards just the £250 fee but I would try to reclaim some of it after you mortgaged elsewhere.

Please read the NR sticky at the top of the forum board. Its long but worth it.

Conrad

Help with costs was a cashback you willingly took at outse. Its only fair you now return that free gift since you are leaving, REGARDLESS that N Rock cant offer you any deals to stay.

JRPeach

Word of advice to all you who are about to redeem your NR mortgage, if you had a 'Help with costs' offer on your mortgage, make sure the expiry date coincides with the mortgage expiry date!! I have just redeemed mine and they had 2 dates, 2/5 for the mortgage and 6/5 for the help with costs. I fought them and argued there was no transparency in their letters to me, only clarifying the mortgage expiry date of 2/5. They have since conceded and gave me my refund less the extra 4 days interest.
Pass this on to anyone else you know about to redeem theirs.
JR

homer_j_3

sorry, just replied on your other post JRPeach.

Could you clarify when you took this mortgage out, how long the inital deal was for?

The HWC options was always clear in the illustrations and offers and I am surprised that you got a result so it may help to see if there was anything about your case which made it unusual?

JRPeach

I took a fixed rate mortgage in Nov 06 for 18 months. No special arrangements apart from the usual tie in to 18 months, but their explanation was that the help with costs completed on the 6th Nov 06. My argument was why did my mortgage expire on the 2nd May instead of the 6th May!

Hope this helps.

dunstonh

I think you have a rare case there which they waived because of the dates being only slightly different and in reality there really shouldnt be much or any difference.

The fee itself and the clawback period if you repay earlier are valid and understandable. So, trying to get it back under early repayment basis would be unlikely as that is a choice (and not an admin error).

homer_j_3

I thought the HWC was due for 3 or 3.5yrs of taking it. This has baffled me further now unless it was different for 18mth deals??

Rick62

HWC is differrent from the ERC and do not necessarily coincide with the product expiry date.

The HWC period has changed at least once and I think was different for purchase vs remortgage. Also they used to waive it (or roll it over) if you then took another product with NR. A lot of people (or their brokers) ignored it, assuming they would get a new product with NR.