Nationwide set our mortgage up WRONG!!!

mobileuser

Hi guys,

I hope you can help.

We've recently moved and had to borrow more money to get a bigger house. We had a mortgage that was a 10 year fixed @ 5.18% which was down to £64,000 as we had made £21,000 overpayments. We asked nationwide to get our overpayments back so we could use this money to do the new property up. So this brought our current mortgage up to £85,000. We then needed another smaller nationwide mortgage of £45,000 @ 6.18% to purchase the house. Bringing our borrowing up to £130,000.

I hope your with me so far?

Well we got the extra borrowing and the over payments back no problem. But we just checked our account online and it's showing us as having to mortgages as follows

£65,000 @ 5.18%
£65,000 @ 6.18%

We were expecting

£85,000 @ 5.18%
£45,000 @ 6.18%

Obviously we want this resolved as this is not what we agreed to. This is going to make our borrowings more expensive as we want the majority of the money at the cheaper rate. Any suggestions how we can get this resolved? As the unhelpful woman and nationwide is saying that now this is set up they won't be able to change it without us inccuring charges. This dosen't seem fair.

Regards

Matt :-(

Hugbubble

mobileuser wrote: »

Hi guys,

I hope you can help.

We've recently moved and had to borrow more money to get a bigger house. We had a mortgage that was a 10 year fixed @ 5.18% which was down to £64,000 as we had made £21,000 overpayments. We asked nationwide to get our overpayments back so we could use this money to do the new property up. So this brought our current mortgage up to £85,000. We then needed another smaller nationwide mortgage of £45,000 @ 6.18% to purchase the house. Bringing our borrowing up to £130,000.

I'm no expert but I didn't think you could just ask for your overpayments back- only ask your lender if they agree to increase your borrowing. Which they obviously agreed to but at the new rate....

But I'm sure someone who knows more than me will give you a better answer soon...

mobileuser

You can with Nationwide. Your allowed to borrow back your overpayments.
We asked to do and stick the borrowing to £85k This happened before we moved.

http://www.nationwide.co.uk/mortgage/existingcustomers_moving/flexfeats.htm

Since moving the mortgages have changed to be 65k each instead of 85k & 45k as intended.

beaker141

When you move any overpayment balance is zeroed down and becomes unavailable, however this shouldnt affect you as you drew down before moving.

How did it look after you had done the 1st step, 85k @ 5.18 or 65 and 25 split ?

I would make an appointment with Nationwide mortgage advisor and run back through with any supporting paperwork. I have always found the branch person to be quite good. I wouldnt ever deal with this subject through a call centre.

mic200202

Sorry, I think the lender is correct in this - your original deal was for £64k at the rate of 5.18% - you had the benefit of making the overpayments using that rate.When you have asked for the overpayments back you have then gone over the limit of the mortgage product for that deal (the 5.18%). However, the lender should have made it clear to you the implications over borrowing the money back, by means of a clear illustration.If this was not the case, then you need to complain to them (in writing) that you have not been treated fairly and see what they can do.

[Deleted User]

mic200202 wrote: »

Sorry, I think the lender is correct in this - your original deal was for £64k at the rate of 5.18% - you had the benefit of making the overpayments using that rate.When you have asked for the overpayments back you have then gone over the limit of the mortgage product for that deal (the 5.18%). However, the lender should have made it clear to you the implications over borrowing the money back, by means of a clear illustration.If this was not the case, then you need to complain to them (in writing) that you have not been treated fairly and see what they can do.

That's not how I read it, the OP is saying that the mortgage was £64K AFTER making overpayments. From what I understand, the original mortgage was £85K at 5.18%.
I would have a look at the terms and conditions of your mortgage and certainly speak to one of their mortgage advisors. If they have made a mistake, they should rectify it.

mobileuser

Van1971 is correct. Our mortgage would of been 85k had we not made overpayments. With over payments this brought it down to 64k. We asked for the money back BEFORE we moved so our mortgage went back to the original amount 85k. So we only needed additional borrowing of 45k. Since moving the mortgages have changed to be 65k & 65k clearly a mistake by them.

We spoke to someone else at nationwide and they said we have to wait until the first payments comes out and if this is not set up correctly she will correct it. I hope she will couldn't help feel that they were fobbing us off. I will let you know how I get on.

Ian_Griffiths_Halifax

mobileuser wrote: »

We spoke to someone else at nationwide and they said we have to wait until the first payments comes out and if this is not set up correctly she will correct it. I hope she will couldn't help feel that they were fobbing us off. I will let you know how I get on.

Go back to the person who told you this and ask them to confirm their advice in some way. Email, letter, fax, whatever. If the first payment goes through, they may say it's too late, or as you say, they could simply be fobbing you off.

getmore4less

What do your new mortgage documents say, you should have had one/two sets that were for porting the current deal and the new loan.

I would check hat you actualy agreed to when you signed for the deal.