Nationwide Existing Mortgage customers

loobs40

My tracker deal with Nationwide is coming to an end in May, and I was ready to switch to the fee free 65% LTV with First Direct which is 2.89%

I had looked at the Nationwide website to see what was on offer and only saw the Fixed Rate offers which were not as good as FD.

However, after a phone call to Nationwide, I looked more closely and discovered that discretely mentioned in the wording was the sentence 'Please note: Any mortgage products reserved on or before 29th April 2009 will revert to the Base Mortgage Rate (BMR).

There was no further information anywhere about the implications of that statement, but for an existing customer like me what it means is if I do nothing I will move onto a rate of 2.5% when my deal ends, better than First Direct and the rate is guaranteed to be no more that 2% above base rate.

In my opinion, Nationwide are doing themselves a disservice by not explicitly stating what the rate will be for existing cutomers in the blurb. Saves me a whole heap of hassle by not having to move accounts

SimbaSimon

loobs40 wrote: »

My tracker deal with Nationwide is coming to an end in May, and I was ready to switch to the fee free 65% LTV with First Direct which is 2.89%

I had looked at the Nationwide website to see what was on offer and only saw the Fixed Rate offers which were not as good as FD.

However, after a phone call to Nationwide, I looked more closely and discovered that discretely mentioned in the wording was the sentence 'Please note: Any mortgage products reserved on or before 29th April 2009 will revert to the Base Mortgage Rate (BMR).

There was no further information anywhere about the implications of that statement, but for an existing customer like me what it means is if I do nothing I will move onto a rate of 2.5% when my deal ends, better than First Direct and the rate is guaranteed to be no more that 2% above base rate.

In my opinion, Nationwide are doing themselves a disservice by not explicitly stating what the rate will be for existing cutomers in the blurb. Saves me a whole heap of hassle by not having to move accounts

To be fair its in black and white on the mortgage agreement and key facts document. They don't want to advertise this fact on their website as the rate is very low and for existing mortgages only and they'd rather people switched to a newer mortgage with them which doesn't have the 2% guarantee with it.

magpiecottage

The only case I saw of this type indicated that if you take out another deal with Nationwide then when it ends you will go onto the SVR at the end - and this doesn't have the 2% guarantee.

Joe_Bloggs

The Nationwide do not have an SVR. They have BMR and SMR. BMR applies to mortgage products pre/around April 2009 and SMR kicked in after this.
This was news at the time .The BMR rate guarantee is mentioned here.
J_B.

Pincher

The good news is not the BOE+2.0% guaranteed rate, it's the freedom to switch, penalty free. More than likely, you were on an even lower tracker rate, like BOE+1.5%. Falling sterling means higher import prices, which will feed into the inflation report six months from now, leading to an early rise in interest rate: even if it doesn't really help with the inflation. I am hoping all the gloom and doom will bring out some mispriced fixed mortgages around June. A five year fixed at 4.5% would be lovely.