Nationwide Mortgage - new fees and charges

fozzeh

KarenBB wrote: »

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.

Yep, which is the basis for the enquiry (it's not a complaint as yet as I haven't incurred the extra charges) based on the orginal terms of contract (when on BMR) gaurenteed to never being 2% more than BR. The newer one (SMR) was from 29/04/09 which has no upper cap...if they have additional terms to this, these were not highlighted at time of signing nor in current literature.

It's unclear territoy but NW is making the money for no extra risk to them (well, none in my case anyway apart from what there would have been if I was still living their).

murrayh

Hi All,

I've had a letter from NW saying i need to fill out a new letting permission form and on it it has the 1.5% charge, so by filling it out an signing I am agreeing to the charge. so what would happen If i did nothing? as i am guessing NW need you to sign and agree to add the charges before they apply them.

Thrugelmir

murrayh wrote: »

Hi All,

I've had a letter from NW saying i need to fill out a new letting permission form and on it it has the 1.5% charge, so by filling it out an signing I am agreeing to the charge. so what would happen If i did nothing? as i am guessing NW need you to sign and agree to add the charges before they apply them.

Then you wouldn't have permission to let the property and would be in breach of your mortgage terms and conditions.

Equaliser123

murrayh wrote: »

Hi All,

I've had a letter from NW saying i need to fill out a new letting permission form and on it it has the 1.5% charge, so by filling it out an signing I am agreeing to the charge. so what would happen If i did nothing? as i am guessing NW need you to sign and agree to add the charges before they apply them.

I completed the application (despite the property being originally mortgaged with Portman and let 10 years ago) but said that I did not accept the introduction of the charge.

The increased charge doesn't come into effect for another 3 years for me anyway as I have a fixed rate product.

murrayh

I had requested permission about 3 years ago and that runs out at the end of May.
My fixed rate running out as well end of July so have been told by NW the charge will be applied after then, but where do I stand as I do not agree with the extra charges, and I guess I need their permission to continue renting it out.

Thrugelmir

murrayh wrote: »

but where do I stand as I do not agree with the extra charges,

Vote with your feet and take your business elsewhere if you do not agree.

Equaliser123

murrayh wrote: »

I had requested permission about 3 years ago and that runs out at the end of May.
My fixed rate running out as well end of July so have been told by NW the charge will be applied after then, but where do I stand as I do not agree with the extra charges, and I guess I need their permission to continue renting it out.

Refer the complaint to the Financial Ombudsman Service as they are yet to make a ruling on the issue of whether the introduction of the new charge is fair or lawful.

murrayh

Equaliser123 wrote: »

Refer the complaint to the Financial Ombudsman Service as they are yet to make a ruling on the issue of whether the introduction of the new charge is fair or lawful.

cheers for that, I will make a complaint, I really didn't know what to do as Selling is a no no due how much money I have put in and would lose.
Getting another deal wouldn't happen either as the rates would be astronomical.

murrayh

Is anyone actually paying the extra 1.5% rate yet? or is it still defered?

ph294

Engeroosi wrote: »

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

Hi Engeroosi,

Who did you talk to about this? Have you got anything in writing from Nationwide to confirm this?

I'm 4 years into a 10 year fixed rate mortgage with NW and now looking to get consent to let for the first time. I've read all of this thread and the other one on the same theme. I was hopeful that I wouldn't need to pay the additional 1.5% but I phoned customer services today and was told that the 1.5% would be charged. I questioned the legitimacy of this (based on the T&Cs) but was still told that the policy was that for all new requests to let, the 1.5% "fee" would be applied. On pointing out that the T&Cs don't allow for a unilateral rate increases I was told it was a "fee" and not a rate increase. After pointing out that NW themselves call it a rate on the consent to let form I was told that "it must be legitimate because it would have been checked by the legal department". At this point I thought it best to try and find someone more senior to talk to (which I haven't done yet).

I'm interested to know if anyone who is currently on a fixed rate deal and seeking consent to let for the first time has actually succeeded in getting an exception from the 1.5% increase (or at least a written statement to that effect from NW and who they spoke to in order to do this).

Thanks,

Pete