They won't let me come off my Nationwide Fixed Rate Mortgage!

Ystrad_Lad

I have a Nationwide fixed rate mortgage which ends in June 2009. I've asked to be switched to their standard variable rate mortgage and I'm happy to pay the Early Repayment Charge, which is only £150. They have refused to let me do it unless I pay the mortgage off in full.

I asked what would happen if I made an overpayment of more than £500, which is their limit. They said they would make the Early Repayment Charge but still keep me on the Fixed Rate Mortgage until June.

Has anyone else had this problem?

betmunch

Just to play devils advocate......

Why should they?

It seems to me that you are going to earn them more money on the fixed rate, its the contract you signed for. So, why should they let you out of it?

catriona69

Why is it a problem? Presumably by doing this they would lose money and it's up to them if they do it or not. Is there any reason why you can't just wait until June (like I have to do as this is when my fixed deal ends too).

If the SVR was higher than your fixed rate you wouldn't want to switch early, would you? So why would your bank want to switch you onto the lower rate earlier than it has to?

Ystrad_Lad

Why line the bank's pockets if there is a way out of it?

If I definitely can't change then I'll wait, but as this is the Money Saving Expert forum I thought there may be someone with some useful comments.

koexelek

I think the key to this is that they want to keep you tied in.

Yes, if you paid them the erp they would not lose any money, but you would then be a free agent to move elsewhere if you see something better.

I think this is what Nationwide don't want

pfpf

Ystrad_Lad wrote: »

but as this is the Money Saving Expert forum I thought there may be someone with some useful comments.

i'm afraid MSE is like this. you do actually get "useful comments" most of the time, as was the case with the comments you already received.

there are 2 things that then happen.

1. the tone in which they are delivered is nothing short of frosty, often pedantic and nearly always delivered in a superior, 'we are better than you' manor. when someone makes a technical mistake in the details of their query but everyone knows what is meant, the high and mighty choose the pedantic/superior manor route.

or:

2. the OP doesnt like the advice given and takes it onto themselves to become defensive and often agressive.


my response to your query is simply, you will have to stay where you are until the fixed runs out and then go to their SVR unless you want to remortgage elsewhere.

Robert_Sterling_3

How much is the amount outstanding on the mortgage?

betmunch

I see, your looking for a trap door.

No-one has actually done anything wrong by you. The contract you signed has done exactly what was agreed.

I think your a bit out of order complaining about this "problem"

tartanterra

betmunch wrote: »

I see, your looking for a trap door.

No-one has actually done anything wrong by you. The contract you signed has done exactly what was agreed.

I think your a bit out of order complaining about this "problem"

Ystrad Lad (the OP), has come on here for some advice and/or help.
Instead of which, he's just getting smarmy statements like above.
pfpf got it exactly right when he stated:

"the tone in which they are delivered is nothing short of frosty, often pedantic and nearly always delivered in a superior, 'we are better than you' manor. when someone makes a technical mistake in the details of their query but everyone knows what is meant, the high and mighty choose the pedantic/superior manor route."

Ystrad Lad, if I was in your shoes, I would begin the process of changing providers, if only to call the Nationwide's bluff. It may also help, if you write to the CEO, reminding him that, as Nationwide is a mutual, and therefore run for it's members benefit, you are a member and would like to benefit from the new lower BMR.
I can't say that doing any of that will make a difference, but it's always worth a try!
Good Luck.

JMitchell_2

If I were you I'd look at switching lenders.

feisty1

JMitchell wrote: »

If I were you I'd look at switching lenders.

What!! For a mortgage that expires in June, and have the early repayment fee & deeds discharge fee..........pls explain yr suggestion JMitchell