Nationwide Mortgage - new fees and charges

vikinglady

Having received a letter and leaflet from Nationwide BS about new fees and mortgage charges I am rather stunned!


:mad::mad::mad:

Anyone else rather worried about the sudden introduction to rather high increases in monthly payments from 1 Sept, which they say do not alter their terms and conditions...must be something covered in very small print that they could introduce/vary charges when we took out the mortgage....

The charges are, in theory, to make people pay who use the services, i.e. mortgages, rather than penalising all Nationwide members...I thought the interest we paid every month for the mortgage did that?

It is a sliding scale depending on how much the mortgage is, (but it doesn't state whether it means hiw much is left, or how much you took out in the first place), and how long term is left. Could be up to £250 pm on mortgage of £200,000...


HELP and clarity from anyone???? Leaflet a bit vague and we are informed they will let us know nearer the time the exact amount to be added to our monthly payment.......

:(:(

2Sheds

I'm a bit confused to, I think it's only for buy to let people.

Just about to read this lot

http://www.nationwide.co.uk/mortgages/usefulinformation/importantinformation.htm

http://www.nationwide.co.uk/pdf/mortgages/M628_mortgage_fees.pdf

1.5% added if you let your property

Leon_W

I wouldn't worry.

These are revised charges for arrears fees, letters etc and is all pretty standard stuff.

So as long as you don't intend on going into arrears or having your house repossessed then it's business as usual.

The only real change as mentioned above is if you wish to let out your property. they'll charge a fee and load the rate.

vikinglady

:T:T

Many thanks for your helpful responses, 2sheds and Leon W!

I think the leaflet was more confusing than the details of new fees on the back of the letter itself....

Hugely relieved that we are not renting this house out!

Best wishes to all.....

:beer:

Henry_P_Chester

As said it's currently only for buy-to-let. Although be aware rates for banks borrowing money to lend out are increasing, although interest rates are still low. So lenders will be forced to start passing on the higher costs eventually which is what nationwide are starting to do.

opinions4u

Henry_P_Chester wrote: »

As said it's currently only for buy-to-let. Although be aware rates for banks borrowing money to lend out are increasing, although interest rates are still low. So lenders will be forced to start passing on the higher costs eventually which is what nationwide are starting to do.

Swap rates are falling.

Thrugelmir

opinions4u wrote: »

Swap rates are falling.

Building societies fund lending on around 70% being retail deposits.

Somebody has to lend money for another to borrow it. So rates are indicative of actual amounts being inter traded.

PiggyBank01

I am one who is going to be impacted by this hike of 1.5% to my interest rate because I`m letting out my house. I did it not for BTL, not for profit but because I need to move out of my local area temporarily due to work with the intent to move back at some point (to sell eventually).

Because I`m letting out my property they now want 1.5% extra however I`m on a fixed rate deal with them (3 years left) so I either pay the extra % each month or get forced to pay the early payment charges - either way I`m significantly out of pocket to the tune of £3-4k.

They say because this change is to their Tarriff of Charges and not to the terms of the mortgage then there's nothing I can do. I guess they could put a 50% charge on and I`d just have to pay it.

I`m amazed they can do this - it's one thing adding a £90 exit fee to the tariff but a whopping 1.5% monthly penalty is abit harsh. I thought they might have give you the option to re-mortage elsewhere (voiding any early repayment charges). I understand their logic of the charge (risk/admin overheads) but those on a fixed deal have their hands completely tied.

Any advice?

sueipswich

I am in the same position as tombooth01. I wasn't aware that the Nationwide Building Society were going to increase their mortgages by 1.5% for landlords, and was surprised when I receive a letter from them.
. This 1.5% increase will increase my monthly repayments.......who will suffer....the tenant, as the rent will have to go up to cover this increase. :mad:

Does anybody know if all building societies are going to do the same?

stamper

I'd suggest writing to Nwide and requesting a) they clarify which part of the terms & conditions allow them to introduce this fee, and b) if they have altered the terms when consenting to let, they provide evidence that you agreed to the new terms. It's a good starting point for taking it further. I'd also suggest reading the FSA's 'Fairness of terms in consumer contracts Statement of Good Practice' for what kinds of terms are considered fair. I've personally yet to be convinced that these new charges are defensible.

Vincenzo

I am in the same position although I recently obtained consent to let for 3 years and it looks as though this means the loaded rate will not apply until the end of that period i.e. when I have to apply for consent again.

If this is the case, I can see the logic and it is no different from what many other lenders have done in the past. Effectively what they are saying is that a condition of them giving you consent to let is that the interest rate is increased by 1.5%.

I have just checked the t&cs from the mortgage (2001) and Section 5 (Changes in Interest rates) states:

'We may change the interest rate applicable to the debt at any time except during any fixed rate period...'

So if you are in a fixed rate period and have let the property for more than three years (ie need to apply for consent again), I read this as saying they cannot raise the rate until you are out of your fixed rate period. HOWEVER I suppose they could just withhold consent to let, although their terms and conditions state they will only do so if it is 'reasonable for us to do so'.