Nationwide Mortgage - new fees and charges

PiggyBank01

samwardill wrote: »

Was yours Stuart G?

Yes it was - he also said there were a 'number of these complaints against Nationwide regarding this additional interest rate'.

PiggyBank01

Equaliser123 wrote: »

Be interested to know the basis of your arguments.

My argument is that I`m in the middle of a 5 year fixed rate mortgage with Nationwide with 'permission to let' however they want to increase it from March next year.

My local branch sold me the mortgage when I had 'permission to let' and it was never mentioned that 'oh we know you`re on a fixed rate mortgage but we might increase the rate anyhow'.

P.S. My username has changed in case you`re wondering why I`ve jumped into this thread!

fozzeh

Saved me trouble starting a new thread

I'm looking at letting my property out and N/W are my mortgage provider. I'm on the SVR (BR+2%) and I'm quite miffed about being charged an extra ~£80pcm for the "priviledge" of N/W being the mortgage providers.

Has anyone had any response or indication yet on the fairness of this implication? It's simple profiteering. They do have a risk (which would be that the owner relys on the the letting to pay the mortgage) but this is superceeded and backed up by "if your mortgage repayments are not kept up, your house may be repossessed" so reverts back to straight ownership T&C's.

Alternatively, I do have another property. If I could switch the morgage over to that one and own the original outright, I'd get around the b*stard tax...what does anyone think to that one?

Equaliser123 wrote: »

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.

They should have included your "right to go to FOS" leaflet then :A

Vincenzo

fozzeh wrote: »

Alternatively, I do have another property. If I could switch the morgage over to that one and own the original outright, I'd get around the b*stard tax...what does anyone think to that one?

Makes sense to do this, in my opinion.

samwardill

I got a response from my assigned adjudicator at the ombudsman last week. His conclusion was to reject my complaint as my property is not actually currently being let and I am not suffering a loss.

This is not an unexpected response. However I wrote back and asked him to reconsider (or escalate to an ombudsman). My issue is that there is a high likelihood that I will need to rent out. Therefore I need clarity on my position now so, if necessary, I can change mortgage now. If Nationwide are forced to abide by their Ts & Cs then I would stay with them as I would not be able to find another mortgage as good. However, if they are allowed to renege, I need to change and I need to do it now as then I can still get another owner occupier loan (rather than having to get a BTL loan if the property were let).

I think that I am being reasonable. Fingers crossed that the adjudicator / ombudsman will agree.

Thrugelmir

samwardill wrote: »

I think that I am being reasonable. Fingers crossed that the adjudicator / ombudsman will agree.

Agree with what? You have no grounds for registering a complaint.

fozzeh

Thrugelmir wrote: »

Agree with what? You have no grounds for registering a complaint.

samwardill wrote: »

...My issue is that there is a high likelihood that I will need to rent out. Therefore I need clarity on my position now so, if necessary, I can change mortgage now. ...However, if they are allowed to renege, I need to change and I need to do it now as then I can still get another owner occupier loan ...

I'm pretty sure if you read the whole post, you would see what the main enquiry was about - pre-planning.

I'm sorting mine out with the EE on Saturday to put on let market Monday, hopefully get someone in soon and register the complain straight away. Either way, the rental payments should cover the cost of the 4% charge...but that extra cash could go into the little ones CTF, no in some cats pocket.

KarenBB

I can see grounds for complaint if you were letting your property, then took out a 5 year fix and N'wide suddenlytell you you're going to have to pay an extra 1.5%pm from December as you've either got to stumpf up the extra money, pay fees to come out of your product or stop letting the property. In that situation you seem stuck between a rock and a hard place and you had no idea this carge would be introduced.

However if you're on the BMR and start to let out your property knowing you're going to have to pay extra a few months down the line I can't see that you have a complaint as you've gone into this knowing there would be charges and you could change mortgage lenders without an ERC. In this case when you complete the letting application form you're agreeing to the charges you've been told about.

In the first case when the letting application was agreed you didn't know about any charges which is why I can see hope for a complaint but I don't see how you can agree to charges and then complain about them

fozzeh

Main reason for complaint is the enforcing of these charges against what was set out at the original taking of mortgage and what is fair.

The original terms of mortgage state that when the fixed rate end, the SVR would not be more than 2% above BoE BR (and doesn't state that there would be exemptions). That'd be the main angle for myself as this extra 1.5% is classed an interest rate in addition to what they state and takes it over what was originally set out.

(Begrudgingly) paying but not agreeing to the charge is the outcome here. I've worked with a few FoS cases and samwardill's case may get a review...but without a defined outcome (basically, it'd be closed until circumstances changed and complainer notified adj./FoS, then they would reinvestigate).

Thrugelmir

fozzeh wrote: »

I'm pretty sure if you read the whole post, you would see what the main enquiry was about - pre-planning.

But its not an enquiry. Registering a complaint about an event which hasn't even occured is just wasting peoples time (and the tax payers money). As there's nothing to adjudicate on.