Porting Nationwide Mortgage

Airframe

Hello all! - I am in the process of moving house & porting my existing Nationwide Mortgage fixed at 5.68%. I overpaid this mortgage regularly and such there is only 32 months term remaining. Had I not overpaid there would still be 40 months term. In the new arrangement this mortgage is referred as 'Part 1' and the extra borrowing 'Part 2' which is a tracker at 3.08%.

The mortgage offer I got today states the term of 'Part 1' (5.68%) is now the full 40 months, ignoring any reduction in term I previously earned through overpayments. This cannot be right!, can anybody advise?, am I being ripped off?

hostman

Airframe wrote: »

Hello all! - I am in the process of moving house & porting my existing Nationwide Mortgage fixed at 5.68%. I overpaid this mortgage regularly and such there is only 32 months term remaining. Had I not overpaid there would still be 40 months term. In the new arrangement this mortgage is referred as 'Part 1' and the extra borrowing 'Part 2' which is a tracker at 3.08%.

The mortgage offer I got today states the term of 'Part 1' (5.68%) is now the full 40 months, ignoring any reduction in term I previously earned through overpayments. This cannot be right!, can anybody advise?, am I being ripped off?

My understanding is the overpayments are applied at the end of each year. Is it this year you have been overpaying?

Talk to Nationwide ASAP though to confirm what's happening with the overpayments.

Airframe

Thanks hostman for your reply.

At least 8x£500 overpayments were made over this year and last year (it was a 5 year fix with a 5 year full term). I always receive letters from Nationwide stating the new reduced term within days of making an overpayment, the latest (only last month) states that my term was reduced to 2 years 8 months.

The balance of the ported mortgage seems correct, they just seem to be ignoring the reduction in term that I earned.

Mrs_Bumble

porting my existing Nationwide Mortgage fixed at 5.68%. I overpaid this mortgage regularly and such there is only 32 months term remaining. Had I not overpaid there would still be 40 months term.

Although you have overpaid and only have 32 months term remaining, how many months of the actual product is remaining? As they wouldn't be allowed to short change you on the product.

As above though check with Nationwide.

Airframe

Thanks Mrs Bumble, there is 40 months of the actual 5yr product remaining which is what they are imposing after porting, however due to my overpayments it would have ended in 2 years 8 months.

Mrs_Bumble

I think you will find though that as you are entitled to the 40 months that is what they have to port? I am not 100% sure but my feeling is that will be the explanation.

Check with them, it won't be a case of them saying that you have to stay on it for 40 months, just the fact that when you paid for the product that was the entitlement and the agreement. Be interested to hear

vegasbaby100

we ported our product withnationwide recently and we at this time reduced the term aswell, so we were happy, contact them and i am sure they will sort you out. They always seem very efficient when dealing with them.

Airframe

Thanks, yes I will let you know what they say tomorow, tbh from my overall experience with them I have lost any confidence. The advisor tried to charge me the early repayment penalty until I spoke up!.

What is also unusual is that because my new agreement is a 15 year term, the ported mortgage (Part 1) is also now a 15 year term (including the stated 40 months fix). So for 11 years & 8 months it will revert to Base Rate (currently 2.5%) as agreed 'last year' at the start of the fixed deal.

hostman

Airframe wrote: »

Thanks, yes I will let you know what they say tomorow, tbh from my overall experience with them I have lost any confidence. The advisor tried to charge me the early repayment penalty until I spoke up!.

What is also unusual is that because my new agreement is a 15 year term, the ported mortgage (Part 1) is also now a 15 year term (including the stated 40 months fix). So for 11 years & 8 months it will revert to Base Rate (currently 2.5%) as agreed 'last year' at the start of the fixed deal.

The ERC is due unless you're moving into the new house the same day you sell the current one.

However, as long as you buy within six months they refund your ERC (if porting only).

If they have said otherwise, get it in writing, as they told me all sorts of bullocks when I enquired about this very same issue earlier this year.

Mrs_Bumble

I assume then that you intend for part one to complete as it would have naturally and part 2 to carry on for 15 years?

If this is the case then the 15 year term for the Part 1 of the mortgage is wrong then, and must be showing the wrong monthly payment (unless of course it is interest only) The Key Facts Illustration must be correct so that you can make an informed decision. Ask them to explain! Put it right!

Airframe

Well today was eventful! Despite venting my frustration, The Nationwide advisor insisted it is their policy that on porting the mortgage the product term remains regardless of overpayments to reduce the term. They explained that the Part 1 (£13.5K) full term must match the Part 2, that is 15 years. As a consequence the payments on the Part 1 previously £460 are now £110, therefore the mortgage wont be paid off in 2 years 8 months. I understand their theory but it still doesn't seem fair to me. Nationwide today advised I have the option to pay the ERC for the current mortgage (Part 1) and transfer the full loan onto the 3.08% Tracker (Part 2). I am regretting paying my reservation, valuation and application fees and now wish out of principle I moved to an alternative lender.

It seems a Nationwide mortgage is not truly PORTABLE!

Then came 2nd bombshell. I think people should be made aware of this one. The Nationwide declared that if I wasn't planning on porting the mortgage and had paid it off anytime before the 40 months (remember my current target was 2yrs 8mths), then I would incur an ERC. I was seathing because when I took the deal (5yr fix/5yr term) I knew intended to make overpayments to reduce term and asked the advisor if that would be an issue. At that time (last year) the advisor confirmed no ERC would apply in this situation. Suspicious I asked for it in writing and she said she would 'note it on my application'. Strangely there is no record of this now.

It seems a Nationwide mortgages is not truly FLEXIBLE!.

I would really like to hear peoples views, thanks all