Nationwide Mortgage - new fees and charges

Equaliser123

Thrugelmir wrote: »

The FOS have upheld the basis of your complaint. In that the imposition of increased charges during the fixed term period of a mortgage product is unfair. As you, the borrower will incur a financial penalty if you choose to transfer your business elsewhere. So what else would you expect them to rule on?

The additional charge is only levied when property has been let for a period in excess of 3 years. Which seems fair and reasonable.

Not correct. The FOS have not upheld anything. NW caved before a ruling.

Equaliser123

Thrugelmir wrote: »

The additional charge is only levied when property has been let for a period in excess of 3 years. Which seems fair and reasonable.

And my property has been let for 11 years.

Thrugelmir

Equaliser123 wrote: »

Not correct. The FOS have not upheld anything. NW caved before a ruling.

Um..... They've upheld a complaint, no doubt discussing the issue with the NW to arrive at their decision. Which in a sense then creates a ruling as people in a similar position are all treated in a similar fashion.

The rules are still changing longer term. So "caved" in is a OTT term for the outcome.

Thrugelmir

Equaliser123 wrote: »

And my property has been let for 11 years.

Then you've been very lucky. Unfortunately too many people had the same idea as you more recently. No doubt you've benefited financially from the rise in HPI in the 11 year period. So can't really have cause for complaint.

Equaliser123

Thrugelmir wrote: »

Um..... They've upheld a complaint, no doubt discussing the issue with the NW to arrive at their decision. Which in a sense then creates a ruling as people in a similar position are all treated in a similar fashion.

The rules are still changing longer term. So "caved" in is a OTT term for the outcome.

No Ombudsman has ruled. No upholding of a complaint.

Equaliser123

Thrugelmir wrote: »

Then you've been very lucky. Unfortunately too many people had the same idea as you more recently. No doubt you've benefited financially from the rise in HPI in the 11 year period. So can't really have cause for complaint.

Pal, you have absolutely sod all knowledge of my "idea" so quit that gibberish.

Not everyone becomes a landlord through choice.

Tank7

Great result for some of you, well done.

I do have a question though and that is is there anyone, like me, who is not in a fixed rate period just the standard BMR rate?

If so have they heard yet if the extra 1.5% will be charged or is it the lucky ones on a fixed term that will benefit only??????

I have not yet received a letter, either way, stating what my mortgage payments will go up to at the end of December or that there will not be an increase until 20??

Vincenzo

Tank7 wrote: »

Great result for some of you, well done.

I do have a question though and that is is there anyone, like me, who is not in a fixed rate period just the standard BMR rate?

If so have they heard yet if the extra 1.5% will be charged or is it the lucky ones on a fixed term that will benefit only??????

I have not yet received a letter, either way, stating what my mortgage payments will go up to at the end of December or that there will not be an increase until 20??

I am going onto the BMR in January and have had it confirmed that the extra charge will not be levied during my current 3 year period of consent. Following expiry, should I apply for consent again the new rules will apply. I would be surprised if N/W back down on this and have not made a complaint.

I hope N/W will be letting all their holders of fixed rates know that the new rate will not apply during that period, or is it only those that made complaints that will see the reprieve?

jubjub

I spoke to N/W yesterday and was told that the 1.5% increase would not be introduced until my present fixed rate deal expired in approx 15 months time, but come the day, one of my main bones of contention will still remain, which is, that the N/W is introducing a 1.5% "Administration charge" for CTL mortgages, which you can agree or disagree is fair that they charge this extra for what some people will argue (rightly or wrongly) is a BTL Mortgage. My point is that "if" this is an extra administration cost, why does it have to be a percentage of the amount borrowed? Surely the "Administration cost" to the N/W for example a £50000 mortgage and a £250000 cannot be any different but those folk with the £250000 mortgage will be paying 5 times as much " Admin costs" Anybody got any thoughts on this?

PiggyBank01

PiggyBank01 wrote: »

I`m sure the FOS guy who rang me up to tell me about N/W reversing the decision (in my case) said he 'deemed it to be unfair' but I doubt they actually forced N/W to change their stance.

I`m still waiting on the letter confirming this so it`ll be interesting to see the wording... I`ll update this thread when it comes through.

Ok, the letter came through - the jist of it said:

Following our involvement, Nationwide has now told us that it will not seek to apply the additional interest rate until your mortgage is free from early payment charges.

This is in line with the phone call that I had from the FOS who said it that in my case that as I was on a fixed product I had no options available to me and was going to be financially penalised regardless of what I did when I signed up for a product that offered financially security.

I now need to sign a form saying I`m happy with this - I was kind of hoping that if N/W didn`t want the risk of BTL products that they may let me move my business away from them early repayment free. I don`t particularly want to give them any business at all after this episode.