Nationwide won't let me come out of fixed

Shiraz123_2

Just rang nw, asked to move onto base rate and pay the fee applicable becuase it's going to save me. Their answer "we are not allowing members to come out of their fixed rates at the moment". Are they allowed to do this, I am quite happy to pay the fee!

When I said "presumably I can end my mortgage with you and go to someone else's base rate?" the answer "yes that's the only way you can do it".

Bonkers they are going to lose customers.

ILW

Shiraz123 wrote: »

Just rang nw, asked to move onto base rate and pay the fee applicable becuase it's going to save me. Their answer "we are not allowing members to come out of their fixed rates at the moment". Are they allowed to do this, I am quite happy to pay the fee!

When I said "presumably I can end my mortgage with you and go to someone else's base rate?" the answer "yes that's the only way you can do it".

Bonkers they are going to lose customers.

I think they only want to get rid of certain customers. High LTV etc.

beecher

They're under no obligation to allow you to move onto the SVR so yes, they are allowed to do so.

Conrad

Shiraz

You have an absolute right to end youre fixed rate, but there is more to this that you have revealed.
There must be a factor causing this outcome, for example your LTV.

What is the value of youre home (the true, to sell today value)?
How much do you owe?
Have you had any late payments?

beecher

Conrad wrote: »

Shiraz

You have an absolute right to end youre fixed rate, but there is more to this that you have revealed.
There must be a factor causing this outcome, for example your LTV.

What is the value of youre home (the true, to sell today value)?
How much do you owe?
Have you had any late payments?

Nationwide aren't allowing anyone to move onto their SVR early - there have been loads of other threads on this in the last while.

Radiantsoul

Conrad wrote: »

Shiraz

You have an absolute right to end youre fixed rate, but there is more to this that you have revealed.
There must be a factor causing this outcome, for example your LTV.

What is the value of youre home (the true, to sell today value)?
How much do you owe?
Have you had any late payments?

It is probably that he doesn't meet the criteria for remortgage and moving to a variable rate is a remortgage.

TOPAZ_2

I dont think that the reason Shiraz123 cant move from the fixed rate to the SVR before the deal has naturally expired, is anything to do with his personal LTV etc - it is the current policy at Nationwide - Below is an extract from their web site - which clearly states that the only way anyone can move onto the SVR now, is for an existing customer to reach the end of their deal period - to me, this implies that they wont allow you to end voluntarily, because you will not have reached the end of the agreed deal period.


Our Base Mortgage Rate is only available to existing Nationwide mortgage customers reaching the end of their deal period.


Topaz

Shiraz123_2

They didn't take anything into account, didn't delve into figures or facts. They just said at the moment they weren't allowing people to do it.

Aletank

I tried this myself recently and they said the same.
House Value - about £160k
Mortgage - £62k
Never missed a payment etc, credit history spot on.

I have 14 months left on my 5.2% fixed rate and would of had to pay £700 and before the latest 0.5% cut i would of saved £100 a month.

Anon

As has been said, SVR is not available to current customers not at the end of current fixed deals or indeed new customers. From their perspective, why would they? Keeping us locked in for the remaining period will, in most cases mean more money for them so long as the base rate remains low (or indeed, as they no doubt had to borrow the money to lend to us at a higher rate, they may still have that to pay even if you leave, as thy could be fixed as well - not sure how it works tbh!). Anyone threatening to leave will have the redemption to pay and many people will not be prepared to take that hit.

You would need to do the sums and see if there are better deals to be had even taking into account the redemption and any costs of setting up a new mortgage (assuming you meet the LTV requirements and you could secure one in this environment).

The general advice on here recently has been don't bail out early, you fixed for a reason etc, however, as even Martin has now picked it up in this week's email, it is possible you could save (and if you were to go to another fix, albeit higher than the SVRs or some of the other deals advertised, you may indeed be able to guarantee you will save) over the period.

Anon

koexelek

beecher wrote: »

Nationwide aren't allowing anyone to move onto their SVR early - there have been loads of other threads on this in the last while.

The bottom line is they are a profit making organisation, not a charity.

These days, the lenders don't care about losing borrowers. Most of them seem to want their borrowers to go elsewhere anyway