Nationwide Mortgage - new fees and charges

samwardill

Poppy_Kennedy wrote: »

wondering if anyone had any updates regarding this??

I'm not expecting an update for a while. I'm in the hands of the Ombudsman now.

Equaliser123

I actually started off with a Portman mortgage now transferred to Nationwide. I'm not convinced the mortgage conditions are the same. I've today received a response from Nationwide confirming that their 8 week investigation period is up but that they need more time.

samwardill

I recently read in the media that the Nationwide CEO was again
accepting emails from customers (having ceased to do so for some time when the volume of customer dissatisfaction correspondance was proving unmanageable). I took the opportunity to write to him to ask a question that I had posed in my last letter to Nationide but which was not answered in their response.

I asked Nationwide to ‘demonstrate (with data) how Nationwide’s costs justify the new charging structure?’ as their Mortgage terms and conditions require that ‘each fee or charge must be “fair and
reasonable in relation to the cost of to us of doing the type of work
for which the fee or charge is imposed.“’

Nationwide’s response was that the ‘rate of 1.5% was chosen in light
of the Society’s assessment of this increased risk, using benchmark of buy to let pricing’ [sic].

I believe that Nationwide’s response demonstrates that the new fee
structure does not meet Nationwide’s obligations under the terms and conditions for three reasons:
- The interest rate is based on perceived risk and not costs
- The interest is based on whole market pricing of risk and not the
cost (or risk) to Nationwide (‘us’ in the terms and conditions)
- There are good reasons to believe that the risk inherent for buy to
let landlords would be different from that inherent for accidental landlords who wish to let their property for a period of time (therefore this is a poor choice of benchmark)

I passed my correspondance and comments on to the ombudsman.

Vincenzo

samwardill wrote: »

I recently read in the media that the Nationwide CEO was again
accepting emails from customers (having ceased to do so for some time when the volume of customer dissatisfaction correspondance was proving unmanageable). I took the opportunity to write to him to ask a question that I had posed in my last letter to Nationide but which was not answered in their response.

I asked Nationwide to ‘demonstrate (with data) how Nationwide’s costs justify the new charging structure?’ as their Mortgage terms and conditions require that ‘each fee or charge must be “fair and
reasonable in relation to the cost of to us of doing the type of work
for which the fee or charge is imposed.“’

Nationwide’s response was that the ‘rate of 1.5% was chosen in light
of the Society’s assessment of this increased risk, using benchmark of buy to let pricing’ [sic].

I believe that Nationwide’s response demonstrates that the new fee
structure does not meet Nationwide’s obligations under the terms and conditions for three reasons:
- The interest rate is based on perceived risk and not costs
- The interest is based on whole market pricing of risk and not the
cost (or risk) to Nationwide (‘us’ in the terms and conditions)
- There are good reasons to believe that the risk inherent for buy to
let landlords would be different from that inherent for accidental landlords who wish to let their property for a period of time (therefore this is a poor choice of benchmark)

I passed my correspondance and comments on to the ombudsman.

A valid and sound argument in my opinion. We all know N/W have targeted these borrowers because they thought they could get away with it, not because of increased risk or fairness in charging.

Equaliser123

Any update from anyone that has made a FOS complaint?

samwardill

Equaliser123 wrote: »

Any update from anyone that has made a FOS complaint?

I've been allocated to an adjudicator. He gave me a call last week to say hello. Seemed like a pleasant chap.

PiggyBank01

samwardill wrote: »

I've been allocated to an adjudicator. He gave me a call last week to say hello. Seemed like a pleasant chap.

Same here.

Equaliser123

Looks like no sign of backing down from Nationwide.

samwardill

tombooth01 wrote: »

Same here.

Was yours Stuart G?

Equaliser123

tombooth01 wrote: »

Same here.

Be interested to know the basis of your arguments.