Nationwide Mortgage - new fees and charges

stamper

After the Nationwide climb down, yesterday we got what I find to be a really quite offensive letter from them in which they try and paint their U-turn as some kind of generosity on their behalf. It really made me angry.

The letter begins by saying that NW is 'pleased that you have accepted the offer we made'. That would be the offer they were forced to make in which they 'offer' not to extort money from me by breaching our contract.

It then goes on to say something about 'we are pleased that there's been an amicable solution.' Presumably this is how Nationwide describe the fact that they treated their own customers like idiots to the extent of their powers before being comprehensively b!tchslapped by the Ombudsman and leaving a long trail of people who never want to do business with them again.

Finally, it apologises for any concern caused during the process. I find this fascinating because they clearly didn't give a flying one about my concerns when they were trying to take thousands of pounds of my money that they had done nothing to earn.

I think it's the first letter of apology I've ever seen that has actually made the situation worse.

jubjub

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?[/QUOTE]

Has nobody any thoughts on this because it's not going to go away.

Vincenzo

jubjub wrote: »

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?

Has nobody any thoughts on this because it's not going to go away.[/QUOTE]

Fees are often charged in this way. If the bank's cost of lending is 1.5% of every pound lent it makes sense to charge customers this way. I don't believe this to be the case but I don't think the argument stands. I would question more whether 1.5% is reflective of the extra cost following consent to let.

Engeroosi

I am also in the position where I will be liable for the 1.5% increase in May but in a fixed rate with ERC until may2013, Will I need to write to NW to ask for the charges to be levied until my fixed rate ends or will they do this automatically after all the complaints?

Maybe I should get writing to them in any case to make sure, where has everyone been writing to, anyone got an email address?

jubjub

Engeroosi wrote: »

I am also in the position where I will be liable for the 1.5% increase in May but in a fixed rate with ERC until may2013, Will I need to write to NW to ask for the charges to be levied until my fixed rate ends or will they do this automatically after all the complaints?

Maybe I should get writing to them in any case to make sure, where has everyone been writing to, anyone got an email address?

I would certainly get in touch with them and get them to confirm in writing rather than assume anything.

Engeroosi

Yeah I am defintately planning to do that, once I get an email add or postal add then I will be sending a letter.

Engeroosi

Just to confirm to those who might not already know, Nationwide are not going to increase anyones rate if they are in a fixed deal. I have just came off the phone to them. Just means now that you have to switch your mortgage as soon as your fix is up!!! O

samwardill

Equaliser123 wrote: »

Yes, but not actually sure the FOS have actually done anything. I think N/W backed down on the basis of the amount of complaints and the fact that an adverse ruling against them was very possible.

I wish the FOS had actually made a ruling.

I agree! The FOS appear to be dodging the issue.

I have a case with the FOS. The assessor refused to look at it as my property is not actually currently let (see earlier threads). It has been waiting to go for final adjudication for some months now. I'm applying for a new mortgage but, if I got a positive ruling from FOS in time I would stock with NW.

fozzeh

Well, I went in branch today and got the low down. I know what I am paying, what I will be paying in 6 months and that the 1.5% isn't subject to any criteria (although I am sure I saw it somewhere).

My house is now let so I will start my enquiry soon. May look at a FR mortgage for some security though.

KarenBB

fozzeh wrote: »

Well, I went in branch today and got the low down. I know what I am paying, what I will be paying in 6 months and that the 1.5% isn't subject to any criteria (although I am sure I saw it somewhere).

My house is now let so I will start my enquiry soon. May look at a FR mortgage for some security though.

I'm assuming that as you've let the property that you've completed an application fomr to let the property. Looking at the form online it tells you about the extra fee. If you signed that you're accepting the extra 1.5% in 6 months so not sure you'd have grounds for complaint. You would have 6 months to move the mortgage elsehere before you get the extra charge though.