Nationwide changes again!

financialbliss

snowmen wrote: »

need some clarity on this.

tried to open the pdf file on the nationwide website but it wont open. If anyone has more luck can they post the new fees here and say if they only apply to mortgage holders who rent their home or everyone?!
thanks

Their tariff or mortgage changes are here:
http://www.nationwide.co.uk/pdf/mortgages/M628_mortgage_fees.pdf

As others have mentioned, clarification on the item:

Amendment to mortgage term - Charged when amending the term over which you repay your mortgage - £20

is needed.:eek::eek::eek:

I'm hoping it's a £20 charge when you ask your monthly payment to be upped to reduce your term rather than Nationwide starting to charge £20 for a letter when you make a £500 overpayment and it reduces your term.

About to secure message them asking for clarification via internet banking site. Will post back here if / when I get some details.

Financial Bliss.

Penny_pauper

Called Nationwide this morning. The £20 fee for changing the term would apply if you contact them and request that your 20 year mortgage is reduced to a 15 year mortgage term for example (or alternatively, 20 years to 30 etc) as to generate a new monthly payment figure they need to do some calculations and some admin and this is what the £20 charge is covering. If you are overpaying monthly, 'yes you are changing the term of the mortgage but not formally' (advisors words not mine) and therefore the charge doesn't apply as they don't have to do any further admin. Advisor thinks they will be putting out a statement to clarify the situation soon as they have been inundated with calls regarding this charge.
Hope this is of help.
PP

financialbliss

Penny_pauper wrote: »

Advisor thinks they will be putting out a statement to clarify the situation soon as they have been inundated with calls regarding this charge.
Hope this is of help.
PP

PP. Very much help, but I'm not suprised they are getting inundated with queries.

FB.

Numenor

Thanks for making the enquiries, PP. Let's hope the advisor was correct, otherwise they are seriously disincentivising overpayent. Which would be senseless, given that overpayment is about the most responsible thing you can do with a mortgage.

And as FB says, it's no wonder they're inundated with queries when they've been so unclear.

Charlie_H

Thanks for this interesting post--no surprises to hear they're up to changing things re:charges. Strangely-I had a run in with NW this month as my £499 overpayment that reached my account on the 5th May was credited on for April in my online statement. This took me over my limit for April as I had also made my overpayment for that month. I had to clarify with them that i won't be charged Early repayment Fee for overpaying over the allowance £500.01. They didn't apologise for the confusion and couldn't explain how this happened.:mad: VERY very strange. I'm disappointed with them at moment.

If your making overpayments: keep an eye on your statements in case.

Charlie

Rikki123

Thanks for this thread. I received a letter from Nwide today, the 1.5% rate rise affects me.
I'm in a middle of my five year fixed deal, and presumably if I try and change my deal to another, cheaper Nwide product, I need to pay the early redemption charge...? If yes, would anyone know if this could be challenged as this is a change very detrimental to the customer and not in accordance with the FSA Treating Customer Fairly principles?
Long shot, I know...
Thank you all.

pencekeeper

Rikki123 wrote: »

Thanks for this thread. I received a letter from Nwide today, the 1.5% rate rise affects me.
I'm in a middle of my five year fixed deal, and presumably if I try and change my deal to another, cheaper Nwide product, I need to pay the early redemption charge...? If yes, would anyone know if this could be challenged as this is a change very detrimental to the customer and not in accordance with the FSA Treating Customer Fairly principles?
Long shot, I know...
Thank you all.

I am not an expert, but I don't see how this could be legal. What if they added a 20% interest penalty for let property? You'd have to pay a huge penalty to get out of the deal? That surely couldn't be legal..

Queen-Bee_2

This certainly affects me, as manipulation of the term is the primary way I'm managing my mortgage-free journey...

It's all the more irritating because I am an ex-Portman mortgage-holder, and formerly had the capacity to overpay by £10K (or 10% of the original sum pa). When the Portman was gobbled up by Nationwide, the latter decided that this level of overpayment was a grey area and that in fact, it was only possible to overpay by £5k (or 5% of the original sum pa).

I was only placated by the fact that I could alter my term back and forth without charge at any time. Now it seems that this is being withdrawn.

It's all extremely irritating. And very much underlines my contention to become Mortgage Free ASAP - I want to be in control of my own destiny, not subject to the whims of the corporate giants.
QB

spikeydudeuk

Numenor wrote: »

Does this apply to overpayments too, by saying "I want to overpay £500pcm and have the monthly payment remain the same, thereby reducing the term"?

If so, this stitches most of us right up!

Numenor - I doubt they'll charge the fee for this. But even so, you could get round it by over-paying 499.99. They won't formally reduce the term of the mortgage, but it has the same effect - you'll still pay it off sooner.

pencekeeper

spikeydudeuk wrote: »

Numenor - I doubt they'll charge the fee for this. But even so, you could get round it by over-paying 499.99. They won't formally reduce the term of the mortgage, but it has the same effect - you'll still pay it off sooner.

It's not in their charges .pdf so I don't think it should be a problem. It's more formal term changes (I filled in that form today funnily enough) that will have a charge.