Early Cancellation Charge

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IanHunter123
IanHunter123 Posts: 2 Newbie
in Mortgages & endowments
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?
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Comments

  • julicorn
    julicorn Posts: 2,281 Forumite
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    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
    Mortgage neutral: September 2022, mortgage redeemed: December 2022
    New house, new mortgage: December 2022, £276,007
    Current balance: £217,800 minus £8,300 overpayment savings pot
  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    As Natwest said.....tough luck. I would call it stupid timing on your part.
  • Kentish_Dave
    Kentish_Dave Posts: 842 Forumite
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    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
    dunstonh Posts: 116,373 Forumite
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    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). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    IanHunter123 wrote: »
    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.

    Was your choice as to when to agree to a completion date. Deferring matters by a few days would have avoided the charge.
  • kingstreet
    kingstreet Posts: 38,766 Forumite
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    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
    dunstonh Posts: 116,373 Forumite
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    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). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • minimike2
    minimike2 Posts: 2,210 Forumite
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    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
    IanHunter123 Posts: 2 Newbie
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    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
    dunstonh Posts: 116,373 Forumite
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    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). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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