Mortgage with Nationwide - quick questions

Bettyboop

We remortgaged before Christmas 2007 to get a lower rate. We are paying 5.25% in interest. I was just wondering if anyone had challenged there mortgage lenders to lower the interest rates? and if so what did they or you do? Also with the housing market being really bad at the minute we know finding a buying is going to be really difficult. Our mortgage agreement is unfortunately valid for another 4 years .

Ideally we would have liked to sell and redeem what equity is left for something important but I have no idea if this will even be possible.

A lot of you are experts on here and I would really appreciate your help and advice.

Thank you as always.

chewmylegoff

Bettyboop wrote: »

We remortgaged before Christmas 2007 to get a lower rate. We are paying 5.25% in interest. I was just wondering if anyone had challenged there mortgage lenders to lower the interest rates? and if so what did they or you do? Also with the housing market being really bad at the minute we know finding a buying is going to be really difficult. Our mortgage agreement is unfortunately valid for another 4 years .

Ideally we would have liked to sell and redeem what equity is left for something important but I have no idea if this will even be possible.

A lot of you are experts on here and I would really appreciate your help and advice.

Thank you as always.

so - you've fixed your rate at 5.25% for four years, and now interest rates have been cut you want the bank to lower your rate? good luck with that! i'm sure you would have given the bank some extra money if interest rates had risen :rolleyes:

Ian_Griffiths_Halifax

Bettyboop wrote: »

We remortgaged before Christmas 2007 to get a lower rate. We are paying 5.25% in interest. I was just wondering if anyone had challenged there mortgage lenders to lower the interest rates? and if so what did they or you do? Also with the housing market being really bad at the minute we know finding a buying is going to be really difficult. Our mortgage agreement is unfortunately valid for another 4 years .

Ideally we would have liked to sell and redeem what equity is left for something important but I have no idea if this will even be possible.

A lot of you are experts on here and I would really appreciate your help and advice.

Thank you as always.

I'm assuming you've Fixed your rate. If you have you will be so happy you did in 2 - 2 1/2 years time.

Bettyboop

The fixed rate was before the market crashed. I don't understand what you mean when you are saying we will be glad we fixed it?

Ian_Griffiths_Halifax

I expect the rates to be considerably higher than 5.25% at some point in the next 4 years.

Generali

Bettyboop wrote: »

We remortgaged before Christmas 2007 to get a lower rate. We are paying 5.25% in interest. I was just wondering if anyone had challenged there mortgage lenders to lower the interest rates? and if so what did they or you do? Also with the housing market being really bad at the minute we know finding a buying is going to be really difficult. Our mortgage agreement is unfortunately valid for another 4 years .

Ideally we would have liked to sell and redeem what equity is left for something important but I have no idea if this will even be possible.

A lot of you are experts on here and I would really appreciate your help and advice.

Thank you as always.

There will be a clause in your contract regarding the costs for early redemption.

The reason for this is that Nationwide will have entered into an agreement with another bank called an interest rate swap when you took out your mortgage. The cost of this will have to be paid regardless of when you redeem so they will look to get back their costs on this otherwise other borrowers will have to meet the costs of you redeeming your mortgage early which strikes me as

Bettyboop

The redemption penalty is a problem and I can see no way out of that. Would be nice if that were possible though. Thanks anyway.

Generali

Bettyboop wrote: »

The redemption penalty is a problem and I can see no way out of that. Would be nice if that were possible though. Thanks anyway.

AIUI, if it wasn't brought to your attention when you took out the mortgage or you mentioned that you might want to clear the mortgage early then you could have a case for mis-selling. The mortgage board is the place to go for info on that though.

This is the board to use if you want an argument.

Bettyboop

That is very helpful. I will see if I can find the mortgage board. If anyone has any other advice on this issue that will be very helpful.

Generali

Je vous presente, le Mortgage Board:

http://forums.moneysavingexpert.com/forumdisplay.html?f=15

Running_Horse

Bettyboop wrote: »

If anyone has any other advice

I advise you not to sign any legally binding contracts with me.