mortgage rate drop

Bevann

A week ago I got my mortgage offer through from Nationwide (first time buyer). Now I've noticed that the rate on the tracker I am on has dropped from +0.98 to +0.88. I take it this means, tough luck on me and I will be stuck on the higher rate? I won't be moving into the property until the end of next month (fingers crossed), but I have a feeling that there isn't anything I can do about this.

Just thought I'd check though to see if anyone else has been in a similar situation.

Tiddler_2

There's no harm in asking - they may ask you to pay another arrangement fee. Depending on what difference the lower rate makes to your monthly payments, it could still be worth considering as you may save the cost of the fee over 2/3 years

Ian_Griffiths_Halifax

Nationwide would let you switch but you would have to pay the fee in addition to any new fee fo the new deal. Unless it is a very big mortgage, I can't see you justifying an additional cost of, I think, £599.

Tiddler_2

We had a visit from our new N'wide BDM recently saying that they would allow 1 product change without charging an application fee (but that may have been a pre-offer situation) Also gave some good tips for getting around the £500 monthly overpayment limit (the mortgage can be split into up to 4 accounts all on the same deal, with only 1 product fee payable and on each one you could overpay by £500 p.m) this may not be news to some advisers

truescot

I have had the exact same situation just this week.

Got my mortgage offer from A&L through on Tuesday, then checked on Wednesday and they had just changed the rate on a similar product from 5.98% to 5.89% with a 1% fee rather than £999 (£230 cheaper in my case).

I phoned them up and they sent out a revised offer on the new product which I received today. There was no fee for this.
:j

Hopefully for you the Nationwide will do the same. Good luck.

Ian_Griffiths_Halifax

Tiddler wrote: »

We had a visit from our new N'wide BDM recently saying that they would allow 1 product change without charging an application fee (but that may have been a pre-offer situation) Also gave some good tips for getting around the £500 monthly overpayment limit (the mortgage can be split into up to 4 accounts all on the same deal, with only 1 product fee payable and on each one you could overpay by £500 p.m) this may not be news to some advisers

That's news to me. I was told that under no circumstances could the client changed schemes without paying the 2 fees.

I didn't know about slitting the mortgage into 4 accounts either. That's a good idea, but I've not come across a client who could overpay by £2000 per month for a long time.

Tiddler_2

It is very rare that someone wants to pay off £2k each and every month, but there will be occasions where it might come in useful - e.g it may help with someone who gets a bonus that they want to pay off the mortgage - previously would have ruled out N'wide and gone for a "10% overpayment" lender

Bevann

I phoned Nationwide up and they said no as that is the product that had been reserved for me and so will have to pay £599 to switch! In my case it's only a few pounds a month, but still annoying (even more so that I found out I could have got a better deal at HSBC, although maybe not as got turned down at Woolwich because of moat loan).

Feel like writing a letter to them, but don't want them to turn round and say that I can find a mortgage with someone else if I don't like theirs!