Nationwide Mortgage - new fees and charges

PiggyBank01

Vincenzo - that's very interesting what you said about that piece of the T&C and to me it implies...no, states, they can`t do this if you`re on a fixed rate product.

Believe it or not amongst the folders all labelled 'House' (yeah specific I know) I can`t actually find my mortgage T&Cs nor can I find them on Nationwide's website.

Can anyone else find them?

Vincenzo

tombooth01 wrote: »

Vincenzo - that's very interesting what you said about that piece of the T&C and to me it implies...no, states, they can`t do this if you`re on a fixed rate product.

Believe it or not amongst the folders all labelled 'House' (yeah specific I know) I can`t actually find my mortgage T&Cs nor can I find them on Nationwide's website.

Can anyone else find them?

I can't find them anywhere online. Perhaps try calling Nationwide and asking for a copy?

Failing that, I would be happy to scan a copy and email to anyone who wants one.

jacewuk

I too have a fixed rate with three years left to go. My understanding is that the charges will apply to all landlords who have already rented for three years or more.

It is being added on as a fee rather than a rate change. Therefore they can apply it to all existing mortgages.

Can they really get away with this?? This amounts to daylight robbery as far as i'm concerned! Why not just increase it by 10%.

Can anyone clarify this? What action can landlords take? Who can look into this FSA, trading Standards?

Vincenzo

jacewuk wrote: »

I too have a fixed rate with three years left to go. My understanding is that the charges will apply to all landlords who have already rented for three years or more.

It is being added on as a fee rather than a rate change. Therefore they can apply it to all existing mortgages.

Can they really get away with this?? This amounts to daylight robbery as far as i'm concerned! Why not just increase it by 10%.

Can anyone clarify this? What action can landlords take? Who can look into this FSA, trading Standards?

Yes it is an 'aditional letting interest rate' so I suppose they have not changed the rate and as you say it is an additional fee.

The whole thing is immoral. Many people with these mortgages will be letting their properties not out of choice but as a result of the economic backdrop. Nationwide are 'profiting' (yes I know they are a building society...not that they act it anymore) out of peoples' misfortune. This rate rise could cause real financial difficulty for some.

Also beware those that have not declared they have let their properties, there is now a 'non consent letting fee' which is 'dependent on individual cicumstances'!

seraphina

jacewuk wrote: »

Can anyone clarify this? What action can landlords take? Who can look into this FSA, trading Standards?

BTL is very definitely a commercial loan, and therefore not subject to the consumer protection afforded by the FSA and trading standards. I should imagine consent to let is treated in a similar fashion.

And now might be a good time to point out that you can't just unilaterally pass on rent increases to tenants - these are also regulated under AST terms.

PiggyBank01

seraphina - I aggree that BTL is more commercial than domestic and I also agree where Nationwide are coming from with these charges. What I disagree on is that they can impose a % fee on those even on a fixed deal.

Vincenzo - I`ve contact Nationwide to see if I can get my hands on a copy of the full T&Cs, thanks for the offer.

As it has been mentioned as this is being put through as a charge and that they`re not actually changing the interest rate then it would be apparently legal for them to do this.

However as it IS effectively changing the interest rate then I feel that it is underhand and immoral. Based on what the T&Cs say I feel this is a case to put forward to the FSA.

KarenBB

We have a n'wide mortgage but we're not letting out the property and don't plan to in the future so this 1.5% doesn't apply to us but I do get curious about how fees can be introduced. I can't find our mortgage agreement so will be interested to see what people find out. I'm guessing that in the mortgage agreement it says something about the property being residential or being the property that you live in so if it's being let it gives the mortgage company the oportunity to make extra charges. OH did ask about letting a few years ago and was told they approve it for 3 years but we never went any further. Anyone geting a copy of their mortgage offer I'd suggest getting a copy of the letting application form as well as there may be something on there about consent being for 3 years, also a copy of the letter giving you permission to let your property, although some people may have applied 5 years ago and been letting their property for that time, maybe they only had official permission of 3 years, again this could be how they're able to start adding charges on properties that are already let. My thoughts are to get all of the information that you can and read it with a fine toothcomb. I know this 1.5% is a hit an others have said it could have been higher but I suppose N'wide could have said - that's it, we don't class this as a temporary let any more and we want you off our books.

The hardest one is here someone has let the property for over 3 years and then have taken on a fixed rate mortgage on a property that's let. If you had been letting the property for 2 years when you took on a 5 year let I can see that N'wide could say that there's a loading after that 3 years and could put it back on you by saying that you took on a fix rate knowing that you only had permission to let for 3 years so your tough luck. It's different if you'd let the property for 3 years, got permission again for another 3 years and then 6 months later took a fix and then N'wide intoduce the loading in December because you've been letting for over 3 years the above argument is then completely invalid. Pay an extra 1.5% or an ERC is really tough.

Vincenzo

As much as I disagree with what Nationwide are doing, they have been clever in the pricing.

The fact of the matter is, even if you could move the mortgage elsewhere, you are likely to be better off leaving it where it is. Many BTL loans have a 3% upfront fee (that covers 2 years of staying with Nationwide), plus other associated fees such as valuation and solicitors plus their rates will be higher too (this will depend on what deal you have with Nationwide).

Also there will be many on the Nationwide BMR, currently paying 2.5% variable, after the charge 4%. You can't even get close on BTL.

I do think they should give people the option to move with no redemption penalty if they are tied into a fixed rate although I suspect most of us would end up staying for now.

One thing is for sure, despite the fact that it looks as though I have another 2.5 years at a great rate, after this performance I will not touch Nationwide for anything ever again.

giato

Henry_P_Chester wrote: »

As said it's currently 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.

100%only for buy-to-let. Although

Saver2010

Hi there

I too received this outrageous letter from Nationwide. I wonder what advise our dear friend Martin Lewis would have to say and what actions we can take to fight this. I for one will be writing a letter to Nationwide, but we should all individually write to the Financial Ombudmsan and let them review the situation. I would be confident that the FSA would review the mortgage terms which allows Nationwide to do this.

What would you say are the next steps! Martin - your words of wisdom are very much needed here! Thanks