Current Lender Not Allowing Me To Transfer To Lower Interest Rate

ben_and_elly

AAAAAAAAAAAAGGGGGGGGGGGGGGGGGGGGGGHHHHHHHHHHHHHHHH I AM SOOOOO CROSS.
In a fixed rate 5.75 with Nationwide. Found they have lower fixed rate of 4.18 for existing customers transferring to new rate.

I am still in a "tie in" as my rate is still current, so told Nationwide that I am willing to pay redemption penalties as I will still be better of in the long run (over £2000, after penalties paid!) However, they told me they are no longer allowing customers to come out of rates early as they will lose money!!

How is this fair - I could be saving £120 per month and paying them a hefty £2600 early redemption penalty but they aren't allowing me to switch. Is this fair - can they do this?

pixiepie99

Short answer: yes they can.

There are already several threads on this board about this issue. You should probably just read those before people get mad at you

ben_and_elly

pixiepie99 wrote: »

Short answer: yes they can.

There are already several threads on this board about this issue. You should probably just read those before people get mad at you

Thank you. I did have a quick look for some, but obviously not in the correct place. Off now to have a proper browse.

feisty1

Ben & Elly........regarding the "fairness" of Nationwide.....it is their money they can choose what to do with it........just like u, if yr not happy, move........

hostman

Count yourself lucky, our fix rate is higher, fixed two months before the UK economy went totally up the creak and interest rates were slashed.

nixinix

hostman - I am the same as you, my IFA is currently investigating the option of us changing mortgage packages with the Halifax.....does anyone know if they are one who is not letting customers do this? We'll have to pay over £6k in charges but would still be better off in the long term.

Robert_Sterling_3

In my humble opinion it is entirely fair.

It is a bit like asking a bookmaker to take a bet after the race is over.

Foyzone

Same thing just happened to me! Hows it fair? your paying the penalty as agreed. More fool them as you will be off to another lender. Just may of saved on a bit of paperwork

Foy

koexelek

nixinix wrote: »

hostman - I am the same as you, my IFA is currently investigating the option of us changing mortgage packages with the Halifax.....does anyone know if they are one who is not letting customers do this? We'll have to pay over £6k in charges but would still be better off in the long term.

Halifax will definitely let you do it, subject to paying the full penalty and any new arrangement fees

Nationwide will definitely not let you do it

hostman

My view is its unfair.

The reason is simple. I saved hard to have a large deposit, I was prudent to have that. I was again prudent by opting for a fixed rate, so I am certain of my payments going forward. I am then punished because those who were not prudent and instead spent beyond their means cause an economic crisis, resulting in Governments and central banks slashing interest rates to record lows, which has the effect of lowering the cost of borrowing. Making my fixed rate looking f**king stupid and extremely expensive compared to current products.

I wrote to my MP regarding this and he agreed with me, it is unfair and some sort of tax break should be offered for those who secured a fixed rate at a high rate before the world fell apart and our central bank started slashing rates. I'm waiting for a 2nd reply from him, as he wrote to the Chancellor regarding this very same matter and is waiting a response to his question.

Andy_L

Would you be complaining if interest rates had soared?