Nationwide increase monthly payments on fixed rate deal

brit1234

Thrugelmir wrote: »

Well you can only fall into a couple of catergories. Doesn't require much thought to decide which one. Basic finance isn't rocket science.

here here :beer:

Vincenzo

Thrugelmir wrote: »

Well you can only fall into a couple of catergories. Doesn't require much thought to decide which one. Basic finance isn't rocket science.

Yet, I expect you would get it entirely wrong.

smapjb

OK.. Following my earlier post.

I wrote to Grahame Beale the Chief Exec of Nationwide and I got a call from the CEO office and a subsequent letter.

I pointed out the situation I was in.. i.e. fixed rate with ERC vs huge increase in monthly payments and no get out.

I got a very quick and positive response from the Nationwide. Firstly thanking me for pointing out the situation.

It seems that my permission to let had expired, which means that I am entitled to apply for permission to let again. So I will start a whole new 3 year permission to let meaning no extra charges until 2013 at which time my fixed rate period will have ended [I always planned to sell at that time].

I think I now understand a little better what the Nationwide are trying to do. It is clear that the whole permission to let thing is a big mess for them and has not had any governance. By sending out this letter they are regaining control of the situation.

I see this as a sign of the times, and all of those people that managed to slyly get mortgages when they really shouldn't have are going to be reeled in.

Thought I would post this here. It is worthwhile contacting them. I sent an email to graham.beale@nationwide.co.uk

Their response was sympathetic and reasonable and I no longer have any cause for complaint.

Vincenzo

Smapjp - great news, thanks for the update. Glad to see N\W working with their customers. It will be interesting to see what their response will be if the period of consent ends after Sept. I suggest ALL re-apply for consent NOW regardless if when your CTL ends.

Poppy_Kennedy

Just seen this thread

My permission to let would have expired in Jan of this year so I am over the 3 year time period.

Therefore – if I write to Nationwide asking them for permission to let (as term has expired) the 3 years will start again meaning I won’t incur the extra 1.5% charge. I am currently on their 2.5% BMR interest rate – do you think they will see that I am on that and could refuse to let again? Or if I switch to fixed rate would I be in a better position?

Have I got this right?

Has anyone actually done this as yet?

Vincenzo

Poppy_Kennedy wrote: »

Just seen this thread

My permission to let would have expired in Jan of this year so I am over the 3 year time period.

Therefore – if I write to Nationwide asking them for permission to let (as term has expired) the 3 years will start again meaning I won’t incur the extra 1.5% charge. I am currently on their 2.5% BMR interest rate – do you think they will see that I am on that and could refuse to let again? Or if I switch to fixed rate would I be in a better position?

Have I got this right?

Has anyone actually done this as yet?

Poppy - from what I have gathered many people are in their second 3 year period of consent but will not be charged until the current period expires. It stands to reason that if the changes do not take effect until September, you should be fine if you apply now.

Call Nationwide to confirm. It would be good if you could let everyone know how you get on.

Poppy_Kennedy

thanks so much - will give Nationwide a call Thursday (my day off!) and will report back to this thread

thanks

KarenBB

Vincenzo wrote: »

Poppy - from what I have gathered many people are in their second 3 year period of consent but will not be charged until the current period expires. It stands to reason that if the changes do not take effect until September, you should be fine if you apply now.

Call Nationwide to confirm. It would be good if you could let everyone know how you get on.

I know what I'm about to say disagrees with what posters have been told by Nationwide but I'm not sure the people on the phones are correct when they say if you're already letting, you've gone past the original 3 years and your apply again you won't be charged the 1.5% fee. Reading the leaflet with the letter I think they've given the wrong information.

The leaflet says "If our records show you have been renting out the property for 3 years or more as at 1 December, the additional letting interest rate will be applied" I think if you applied to let your property 5 years ago the consent may have expired (without your knowledge) but N'wides records will show that the property has already been let for 5 years and I don't think they'll wait until a second 3 years expires before charging the extra 1.5%. My interpretation of the leaflet may be wrong but I'd suggest getting written confirmation that if you are already letting and apply again the charge won't be enforced for another 3 years. Hope I'm wrong for anyone on a fixed rate.

Vincenzo

KarenBB wrote: »

I know what I'm about to say disagrees with what posters have been told by Nationwide but I'm not sure the people on the phones are correct when they say if you're already letting, you've gone past the original 3 years and your apply again you won't be charged the 1.5% fee. Reading the leaflet with the letter I think they've given the wrong information.

The leaflet says "If our records show you have been renting out the property for 3 years or more as at 1 December, the additional letting interest rate will be applied" I think if you applied to let your property 5 years ago the consent may have expired (without your knowledge) but N'wides records will show that the property has already been let for 5 years and I don't think they'll wait until a second 3 years expires before charging the extra 1.5%. My interpretation of the leaflet may be wrong but I'd suggest getting written confirmation that if you are already letting and apply again the charge won't be enforced for another 3 years. Hope I'm wrong for anyone on a fixed rate.

Karen - I read and interpreted it the same way, which is why I was surprised that the fees would not apply to my mortgage (I recently obtained a second period of 3 years CTL).

I will have been letting for almost 4 years by December but I have it confirmed that the fees will not be charged until the 3 year CTL (6 years in total) expires. It makes sense as it would be rather unfair to give 3 years consent with no fees and then add fees within the same time period.

jubjub

Has anybody managed to clarify this reapplying for consent to let to avoid the charge issue yet?