Natwest have just pulled my offset credit line

Thrugelmir

JODEUK wrote: »

They have certainly not taken into account property price, income levels or individual circumstances etc. It is totally a blanket claw back leaving everyone with £10k above their maximum borrowing over the previous 12 months.

If you aren't utilising the facility then why should it remain open?

NatWest will have to work on the basis that a facility may be used and keep reserves accordingly.

Kavanne

Thrugelmir wrote: »

If you aren't utilising the facility then why should it remain open?

NatWest will have to work on the basis that a facility may be used and keep reserves accordingly.

It's a MORTGAGE. You've got to think of these things over 25 years plus....

Thrugelmir

Kavanne wrote: »

It's a MORTGAGE. You've got to think of these things over 25 years plus....

Its a flexible lending arrangement. As the capital balance doesn't have to be repaid until the end of the mortgage term.

jhughes486

I have been offered the "lifetime tracker" product. It is a cut down version of the foundations mortgage - but a lot better than complete withdrawal of the facility. It has been put together because of the level of complaints. There is no documentation - you apply over the phone and then sign paperwork sent through the post. Without a draft contract or any documentation it is hard to be sure what it is but here is my understanding:
1) They reinstate the limit as it was (likely to be 90% of the house value when you bought it unless revalued)
2) You agree an initial borrowing facility (likely to be much lower - but it depends on circumstances.)
3) When you need founds you have to ask for them and explain what it it for. The bank then increases the limit. No idea what tests they will apply - but apparently there is no income test and it takes about a week to come through.
3) You can borrow up to the original limit at 1% over base (say 90% of the original house value)
4) Additional funds up to 90% of property value are available at normal mortgage rates.

This is very different to having immediate access to a house worth of overdraft! But much better then before. However, I don't trust the bank - I wonder what will happen when you apply for funds. The bank could then withdraw the facilities quietly, one person at a time with no storm of protest. I also don't like the hints that the lifetime tracker might only be available for a limited time. What do people think?

JODEUK

This seems a bit different to what we were offered to switch to.
We were told its a life time tracker at the same rate as the foundations 1% above base.
You could only borrow up to the amount you had previously on the foundations mortgage providing it was not greater than 75% of property value.
You have to drawn down all the funds immediately and can not increase the amount at a later date.
It had to be interest only (we originally wanted to convert part to re-payment due to shortfall on our endowments but found out just yesterday this is not allowed even though we'd signed and sent back all the paperwork mid Dec)
You can overpay a maximum of 10% per year to reduce the capital but this amount is "locked in" and can't be withdrawn in the future.

To us this seemed a pretty good deal as it meant we can get our "savings" back and put them it accounts earning higher interest than the mortgage. Plus still have access to them as and when we need them.

thecardshark

Hi All

It's a bit worrying when people are getting different terms quoted for the alternative Lifetime Tracker.

Especially the one where the bank says it will ask what the purpose of the drawdown is and approve it or not.

And revaluations?

And only one drawdown at the beginning?

Overpay up to 10%? Where did that one come from?

The other one that should concern us is the funding rate clause where it might well say in the small print that if NatWest Base Rate is not representative of the bank's cost of funds then it replaces it with the NatWest Mortgage Rate.

Does anyone have a formal offer for the Lifetime Tracker yet?

I believe that we should tread very carefully until the contract is our hands !!

Regards

TCS

P.S. Remember that NatWest also reads the forums which helps them understand what complainers are thinking and decide what action to take. I have set up a small domain at cardshark.pcs-net.com/natwest for the people above who said that they might like to collaborate. If anyone registers I can flick a switch to make discussions private.

cazuk

For those fellow foundation private bank account holders, have you too received a letter from Nat West regarding their customer survey that they are just launching. I do so hope they call me!