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  • FIRST POST
    • IanHunter123
    • By IanHunter123 19th May 19, 8:30 AM
    • 2Posts
    • 0Thanks
    IanHunter123
    Early Cancellation Charge
    • #1
    • 19th May 19, 8:30 AM
    Early Cancellation Charge 19th May 19 at 8:30 AM
    We recently moved house and changed mortgage providers in process.

    We sold our flat which was on 3 year fixed mortgage plan with Natwest. The terms and conditions stated that if we cancelled mortgage agreement before 1st April there would be a 850 charge, after this date the charge would cease to apply.

    We were 9 days short of this April 1st date and so had to pay the fee. It seems incredibly harsh to charge full amount as we were so close to date where it would no longer apply.

    We spoke to Natwest who said tough luck.

    Does anyone know if there is a process whereby we can try to claim back any of this fee, as it's a bitter and expensive pill to swallow?
Page 1
    • julicorn
    • By julicorn 19th May 19, 8:36 AM
    • 837 Posts
    • 3,434 Thanks
    julicorn
    • #2
    • 19th May 19, 8:36 AM
    • #2
    • 19th May 19, 8:36 AM
    So wait, you decided at the time that you'd rather pay that 850 than delay your move by just under two weeks, but now you want your money back?
    Original mortgage: December 2017, 203,495
    MFW start: April 2018, 201,800
    Current: 159,950
    • BoGoF
    • By BoGoF 19th May 19, 8:47 AM
    • 5,311 Posts
    • 5,182 Thanks
    BoGoF
    • #3
    • 19th May 19, 8:47 AM
    • #3
    • 19th May 19, 8:47 AM
    As Natwest said.....tough luck. I would call it stupid timing on your part.
    • Kentish Dave
    • By Kentish Dave 19th May 19, 9:39 AM
    • 806 Posts
    • 1,492 Thanks
    Kentish Dave
    • #4
    • 19th May 19, 9:39 AM
    • #4
    • 19th May 19, 9:39 AM
    As above, you chose not to wait, why on Earth do you think that you can now renege on the contract that you agreed to?
    • dunstonh
    • By dunstonh 19th May 19, 9:44 AM
    • 98,597 Posts
    • 67,050 Thanks
    dunstonh
    • #5
    • 19th May 19, 9:44 AM
    • #5
    • 19th May 19, 9:44 AM
    It seems incredibly harsh to charge full amount as we were so close to date where it would no longer apply.
    Its a line in the sand. If they gave 7 days grace then people with 17 days would think it is harsh.

    Does anyone know if there is a process whereby we can try to claim back any of this fee, as it's a bitter and expensive pill to swallow?
    ERCs are considered fair and reasonable because they exist for good reason. They are in your contract you agreed.

    Most people in this scenario would have the completion date after the ERC ended.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Thrugelmir
    • By Thrugelmir 19th May 19, 9:49 AM
    • 64,951 Posts
    • 57,275 Thanks
    Thrugelmir
    • #6
    • 19th May 19, 9:49 AM
    • #6
    • 19th May 19, 9:49 AM
    The terms and conditions stated that if we cancelled mortgage agreement before 1st April there would be a 850 charge, after this date the charge would cease to apply.
    Originally posted by IanHunter123
    Was your choice as to when to agree to a completion date. Deferring matters by a few days would have avoided the charge.
    If the financial system has a defect, it is that it reflects and magnifies what we human beings are like. Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. Booms and busts are products, at root, of our emotional volatility.
    ― Niall Ferguson
    • kingstreet
    • By kingstreet 19th May 19, 4:00 PM
    • 35,521 Posts
    • 19,422 Thanks
    kingstreet
    • #7
    • 19th May 19, 4:00 PM
    • #7
    • 19th May 19, 4:00 PM
    9 days, 9 weeks, 9 months...

    The lender arranges a rate swap in the money market to provide a fixed rate and has to agree to the T&Cs which include ERCs which end on a particular date.

    If you end the arrangement early the market counterparty which supplied the swap has to be compensated. Regardless of how long is left...
    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.
    • dunstonh
    • By dunstonh 19th May 19, 4:25 PM
    • 98,597 Posts
    • 67,050 Thanks
    dunstonh
    • #8
    • 19th May 19, 4:25 PM
    • #8
    • 19th May 19, 4:25 PM
    I'm surprised the board didn't ban the OP for his extremely rude comments. People have been PPR'd for far less. Instead, they have removed the offending post and the rather calm replies.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • minimike2
    • By minimike2 19th May 19, 5:26 PM
    • 2,090 Posts
    • 1,577 Thanks
    minimike2
    • #9
    • 19th May 19, 5:26 PM
    • #9
    • 19th May 19, 5:26 PM
    Indeed.... I reported the reply and I had MY reply removed .... A bit odd given that I was stating that his language / behaviour was unacceptable. Unless it was because it would then not make sense giving the offending post was removed. I hope that is the reason anyway. (I didn't see anything after mine that isn't here now as I have been out all day since).

    But yes OP should have been banned for the comments. Absolutely disgusting.
    • IanHunter123
    • By IanHunter123 20th May 19, 8:49 AM
    • 2 Posts
    • 0 Thanks
    IanHunter123
    Guys (Mike),

    I feel I must apologise unreservedly for my post yesterday, I realise now that foul and abusive language is not the Martin Lewis way, and after being reprimanded by Martin's people, I now know the error of my ways.

    To be fair, the last part was added, unbeknownst to me, by a friend who we had staying, who seized the opportunity to be a tinker, when I wasn't looking. He will not be staying again.

    I guess we both said things we regret, which is why our posts were erased, so again I'm sorry. I hope you accept my apologies, and Mike, I accept yours buddy!

    I guess I was looking for either a "Yes, that is possible " or "No it's not..." answer, but instead, in my naiivity as a first time MSE Poster, I stumbled into one of those weird corners of the internet, and was subjected to the scorn judgement, and cyber finger wagging, of total strangers, which was a shock to my system. I thought that this only existed on the Daily Mail comments section, but I was wrong. And next time i need to ask for any advice online, will think long and hard if it is acceptable to do so, and if its within the limits of taste and decency, set by those most selfless moral guardians of our times, intent message board people.

    Love to you all x
    • dunstonh
    • By dunstonh 20th May 19, 9:09 AM
    • 98,597 Posts
    • 67,050 Thanks
    dunstonh
    So, it was a friend that did it. That famous cop out. Despite you repeating much the same again but without the swearing.

    You got the answer. We can't make you like the answer.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • minimike2
    • By minimike2 21st May 19, 8:16 PM
    • 2,090 Posts
    • 1,577 Thanks
    minimike2
    You accept mine?

    I haven't made any apology (because there was nothing I said which I needed to apologise for?). Confused.

    But there we go.
    • Thrugelmir
    • By Thrugelmir 21st May 19, 8:53 PM
    • 64,951 Posts
    • 57,275 Thanks
    Thrugelmir
    I stumbled into one of those weird corners of the internet, and was subjected to the scorn judgement, and cyber finger wagging, of total strangers, which was a shock to my system. I thought that this only existed on the Daily Mail comments section, but I was wrong.
    Originally posted by IanHunter123

    Absolutely no need to retort with further verbal d......... There's an ideal site for you. Called Mumsnet. All very cuddly. You can have a good moan and receive words of comfort and sympathy. No need to be put up with the good old fashioned real life observations that you'll receive on MSE. From a bunch of anonymous people who work in the world of finance in some capacity on a daily basis.

    If the financial system has a defect, it is that it reflects and magnifies what we human beings are like. Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. Booms and busts are products, at root, of our emotional volatility.
    ― Niall Ferguson
    • in my bumble opinion
    • By in my bumble opinion 22nd May 19, 12:11 PM
    • 1,250 Posts
    • 1,931 Thanks
    in my bumble opinion
    We were in a similar situation recently with Natwest, having to sell 12 days short of being able to avoid the early repayment charge.

    It was a miscalculation on my part about the dates, etc, then became impossible to change without the sale falling through (Doh!).

    Anyway our new mortgage also turned out to be with Natwest (via a broker), though there was a gap of several weeks between the sale of our old house and the purchase of our new house.

    Natwest said we would have to pay the early repayment charge as it was a new mortgage. We were prepared to accept that but when i was on the phone to them a few days later about a mistake with our new address details it came up again and the adviser said it might be worth getting our broker to write a letter asking if they would waive the charge.

    He did and they did.

    Fair play to Natwest (and our broker), saved us a lot of money.
    Last edited by in my bumble opinion; 22-05-2019 at 12:40 PM.
    ''He who takes no offence at anyone either on account of their faults, or on account of his own suspicious thoughts, has knowledge of God and of things devine.''
    • Amst
    • By Amst 23rd May 19, 6:01 PM
    • 139 Posts
    • 98 Thanks
    Amst
    We were in a similar situation recently with Natwest, having to sell 12 days short of being able to avoid the early repayment charge.

    It was a miscalculation on my part about the dates, etc, then became impossible to change without the sale falling through (Doh!).

    Anyway our new mortgage also turned out to be with Natwest (via a broker), though there was a gap of several weeks between the sale of our old house and the purchase of our new house.

    Natwest said we would have to pay the early repayment charge as it was a new mortgage. We were prepared to accept that but when i was on the phone to them a few days later about a mistake with our new address details it came up again and the adviser said it might be worth getting our broker to write a letter asking if they would waive the charge.

    He did and they did.

    Fair play to Natwest (and our broker), saved us a lot of money.
    Originally posted by in my bumble opinion
    Whilst you got a happy ending I'm amazed your application wasn't flagged as a port, albeit non-simultaneous. Did you move onto a more preferential rate?
    • fewcloudy
    • By fewcloudy 24th May 19, 2:39 PM
    • 291 Posts
    • 166 Thanks
    fewcloudy
    This thread brought back (bad) memories.

    I had an Abbey National mortgage back in 1998, fixed for 3 years. Family/work circumstances required me to sell up and move back to my home town a bit unexpectedly. Thankfully it happened a few months after the 3 year fix had ended, and I'd already moved on to the standard variable rate.

    When the house sold and I settled up, I was hit with a penalty charge. Upon questioning this, I was pointed in the direction of the small print of the mortgage agreement. On one line there were words to the effect of "fixed rate will apply for 3 years and you'll get charged if you need to get out of it early", and on the next line it said "charges may apply for a further 3 years". Which indeed they did...

    From memory the charge was 120 days interest but I would need to check that, I still have all the paperwork.

    It was a nasty surprise at the time, and unlike many posts about ERC on this forum, I just was completely unaware it was coming as I'd completed the 3 year fix. Funnily enough, that was a mortgage I arranged without using a mortgage broker
    Last edited by fewcloudy; 24-05-2019 at 2:43 PM.
    Feb 2008, 20year lifetime tracker with Sproggit and Sylvester, 0.14% + base for 2 years, then 0.99% + base till end of mortgage...
    • Kentish Dave
    • By Kentish Dave 24th May 19, 9:31 PM
    • 806 Posts
    • 1,492 Thanks
    Kentish Dave
    We recently moved house and changed mortgage providers in process.

    We sold our flat which was on 3 year fixed mortgage plan with Natwest. The terms and conditions stated that if we cancelled mortgage agreement before 1st April there would be a 850 charge, after this date the charge would cease to apply.

    We were 9 days short of this April 1st date and so had to pay the fee. It seems incredibly harsh to charge full amount as we were so close to date where it would no longer apply.

    We spoke to Natwest who said tough luck.

    Does anyone know if there is a process whereby we can try to claim back any of this fee, as it's a bitter and expensive pill to swallow?
    Originally posted by IanHunter123
    I had exactly the same situation. I ordered four large pizzas from Dominos. When they arrived I asked if I could keep them and not pay and they said no!

    I explained that as they had already made and delivered them that they were not now going to lose any money but the delivery guy actually made me pay.

    Do you know if there is any way I can claim back the money for these pizzas as its a bitter and expensive pill to swallow?
    • Housebuy12345
    • By Housebuy12345 26th May 19, 12:15 AM
    • 210 Posts
    • 47 Thanks
    Housebuy12345
    Someone I know had to pay 10k
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