Porting Nationwide Mortgage

hostman

Airframe wrote: »

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

Whatever these companies say you always need it in writing, otherwise it means nothing. They will say anything for your business, which is completely disgusting.

Mrs_Bumble

The thing is with the ERC that you are allowed to make the overpayments of up to £500 a month but what it usually says, check the small print on your offer, just in case! is that the ERC are payable on the outstanding balance and so if you have effectively paid the overpayments and reduced the balance to nil what they going to charge you?

I don't see why you can't have 2 terms on two different products, I have seen this operate with other lenders.

Ask Nationwide how this is treating customers fairly, that you want to port your existing product on its existing terms and term, if their system can't cope with 2 different terms then that is their problem as porting means porting the existing product and that you feel that you need to raise this as a complaint and run it past the FSA and the ombudsman!

Sorry having a stroppy day!

MarkyMarkD

I don't understand why Nationwide cannot cope with porting one product with one term and having a top-up on a different product with a different term. That is, surely, what most people porting would expect to do.

Airframe

Yes that is what I expected too. Now my immediate dilemma is do I switch 'all' £125K to the tracker and add the ERC? or stick with the porting. That aside I will certainly register a complaint with Nationwide & FSA.