Nationwide Tieing Me In To Mortgage, Please Advise

burhaan777

hi guys

i took out a 5 year fixed deal with nationwide in sept 07 at 5.68%, the mortgage advisor (independent, recommended by estate agent selling the house) stated we could cancel the mortgage at anytime in the 5 years but there would a charge, around 4k! now i can get a better deal saving me at least 3k by 2012 (same time as the 5 year fixed ending) even after paying nationwide for grand.

after having called them 10mins ago, the customer rep stated they have removed this option 3 days ago for all customers on fixed deals and that a letter stating this is on its way, she couldnt give me a reason why and said wait until the letter arrives.

i feel like they are trying tieing me down so they make maximum money. can i report them to the FSA or should i speak to the mortgage advisor first? i am extremely annoyed, as my monthly payments are £896 and if i could cancel and go elsewhere they would be £663, so you can clearly see where id be saving.

any help would be appreciated, thanks

Trying_to_be_good

Are you wanting to change to a different Nationwide mortgage, or to a different lender? I don't see how they can stop you repaying your mortgage by moving to a new lender, but they are within their rights to not let you have a new product of theirs.

dunstonh

i feel like they are trying tieing me down so they make maximum money.

You have misunderstood what they have done and are making incorrect assumptions.

i am extremely annoyed, as my monthly payments are £896 and if i could cancel and go elsewhere they would be £663

If you want to go elsewhere you can. Pay the early repayment charge, remortgage and job done. That hasnt changed.

burhaan777

dunstonh wrote: »

You have misunderstood what they have done and are making incorrect assumptions.



If you want to go elsewhere you can. Pay the early repayment charge, remortgage and job done. That hasnt changed.

thats what i am wanting to do but they have removed that option from me, i cannot pay an early repayment charge to cancel the mortgage and remortgage elsewhere. the sales rep confirmed this with her manager

dunstonh

thats what i am wanting to do but they have removed that option from me, i cannot pay an early repayment charge to cancel the mortgage and remortgage elsewhere. the sales rep confirmed this with her manager

I dont believe they are correct.

Being an IFA, i dont do mortgages but I do see the mortgage emails and read the media releases and I cannot see how Nationwide can refuse you moving your mortgage elsewhere if you are willing to pay the exit charges. The contract allows for you to do this.

I do understand that Nwide were waiving some early repayment charges if you stayed with them. Whether they still do that or have stopped I dont know.

Hopefully one of the mortgage advisers will confirm if this is correct or not.

ILW

Could it be some sort of confusion about they think you are selling or something.
Is there equity in the property as I would guess its valuation has dropped since 2007 and if you had a 95 or 100% mortgage you would not be able to clear it?

koexelek

dunstonh wrote: »

Being an IFA, i dont do mortgages but I do see the mortgage emails and read the media releases and I cannot see how Nationwide can refuse you moving your mortgage elsewhere if you are willing to pay the exit charges. The contract allows for you to do this.

Hopefully one of the mortgage advisers will confirm if this is correct or not.

You are spot on. You can terminate any mortgage deal with any lender if you are prepared to pay the full early repayment charge.

Obviously, if you want to take the new mortgage elsewhere, you need to make sure you fit the new lenders' criteria

payless

Thay can't stop you...

if you can get a deal elsewhere and you want to move .. whilst 3 yr rates are available from below 4% , please make sure the fee in leaving + and arrangement fees ( and poss val/ legal / exit) really do justify the move ( allow for any extra added to debt and the interest accrued on this)

( of course you may look at deals other than 3/4 yr fixed- if so you won't be comparing like for like, so other variables come to play )

Thriftyknickers

I've just had a quick look on their website and there's no mention of this changing. Just sounds like you'd have to pay a hefty 5% to get out of a 5 year fixed mortgage. Rather you than me!