Nationwide Screwing Fixed Rate - Banned ditch the fix to make profit

jsussex

OMG
I was stunned today when I contacted Nationwide to discuss ditching my fixed rate mortgate(s). I had spoken to them a couple of months ago and they said the cost of ditching was about £1k. Being busy/lazy I've only just got around to making an appointment to ditch them , only to be told that Nationwide changed the rules 2 months ago preventing people on fixed rates ditching unless they are in the final three months!!

This to me is blatantly screwing their own members - "quick, lets make sure the members on 6% fixed rate cant ditch and we can make a tidy profit for months"

I am gobsmacked they can and have done this - I have been a member of nationwide for over 20 years. I've got several mortgages, Isa's, current accounts, insurance policies - and as soon as is humanly possible I'll be moving to another bank/society. Probably a case of cutting off nose to spite face, but I just have to.

Is it me or is this just wrong?

cbrpaul

That does seem harsh , so what if you wanted to pay off your mortgage, are they saying you are unable too , until the fixed period ended ?

Is there anything in your mortgage documentation to say you can leave before the fixed deal ends , for a fee of course

opinions4u

jsussex wrote: »

This to me is blatantly screwing their own members - "quick, lets make sure the members on 6% fixed rate cant ditch and we can make a tidy profit for months"

Except that they are still committed to paying their wholesale fundres the rate they borrowed at in order to lend to you. So by letting you out of your deal they would lose money. Screwing other members.

I am gobsmacked they can and have done this

Perhaps they are gobsmacked that you want to break the terms of a deal you agreed to some time ago.

I have been a member of nationwide for over 20 years. I've got several mortgages, Isa's, current accounts, insurance policies - and as soon as is humanly possible I'll be moving to another bank/society. Probably a case of cutting off nose to spite face, but I just have to.

So you don't want to honour the agreement you made and it's all their fault. Ok.

Is it me or is this just wrong?

It might hurt you, but it makes absolute sense.

Robert_Sterling_3

cbrpaul wrote: »

That does seem harsh , so what if you wanted to pay off your mortgage, are they saying you are unable too , until the fixed period ended ?

You can't change your bet on a horse race after the race is over.

A fixed rate is a rate that is fixed for a period of time.

If rates go up in general Nationwide do not say to their fixed rate customers "would you mind if we put your fixed rate up?"

jsussex

opinions4u wrote: »

Except that they are still committed to paying their wholesale fundres the rate they borrowed at in order to lend to you. So by letting you out of your deal they would lose money. Screwing other members.

Perhaps they are gobsmacked that you want to break the terms of a deal you agreed to some time ago.

So you don't want to honour the agreement you made and it's all their fault. Ok.

It might hurt you, but it makes absolute sense.

Look, the orignal deal was I could get out of the fixed rate at any time, for a fee. That was the

the agreement made

.

2 months ago, they were still saying , yes thats the deal, bin the fix for a penalty fee.

Suddenly they are saying its not the deal anymore, hold on! we suddenly dont like the agreement we made with you!! we're going to change it, so F** you Mr Customer.

So although your answer may *seem* smart, in fact you are missing the point.

_Andy_

You can 'bin the fix for a penalty fee' albeit not take a new deal with them.

jsussex

cbrpaul wrote: »

That does seem harsh , so what if you wanted to pay off your mortgage, are they saying you are unable too , until the fixed period ended ?

Is there anything in your mortgage documentation to say you can leave before the fixed deal ends , for a fee of course

Yes, thats what I mean, the deal is/was you can leave mid term for a fee. 2 months ago I enquire about it, they say the penalty fee is about £1k - today they say they have moved the goal posts and the deal is no longer there - clearly because they want to screw me and everyone else in the same boat, at 6% for as long as poss. The reason I took the deal in the first place was that I knew I could get out for a fee mid term - now I cant. Now of course its in their terms "we can change the terms when we feel like it" but you know, its just not cricket.

MORPH3US

_Andy_ wrote: »

You can 'bin the fix for a penalty fee' albeit not take a new deal with them.

Nail on the head.....

You can ditch your fixed rate mortgage by paying the fee, but what they are saying is they wouldn't offer you another deal....

So if you don't like it, switch to another bank / building society....

Otherwise, sorry but tough!

Comyface

MORPH3US wrote: »

Nail on the head.....

You can ditch your fixed rate mortgage by paying the fee, but what they are saying is they wouldn't offer you another deal....

So if you don't like it, switch to another bank / building society....

Otherwise, sorry but tough!

Absolutely. You can still get out of your fixed rate for a fee, that hasn't changed. Pay the whole thing off, pay the fee, end of. The only thing that has changed is they now won't offer you the SVR to transfer onto. That was never part of the original agreement anyway.

Opinions4u is spot on as well imo. Don't shoot the messanger.

jsussex

Don't shoot the messanger.

OK OK fair enough, sorry Opinions4U, I'm just fuming they changed the rules on me and it just looked wrong. I spoke to two "advisors" at Nationwide, and neither of them said that I could still bin the deal for the penalty and go elsewhere. They just said I couldnt bin it full stop. So a bit of mis-information.

TBH changing the rules mid term IMHO is underhand so I will move elsewhere anyway - Now you're going to tell me I'm not going to find a Tracker easily anywhere else?

mrcow

Just call them back and get a redemption figure.

And then look elsewhere with an alternative provider for a deal.