Nationwide Mortgage - new fees and charges

Thrugelmir

Saver2010 wrote: »

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

The Nationwide most likely feel that Consent to Let is being abused by borrowers. As its not something they are obliged to allow but do. So hard to see what grounds for complaint are. People owning a BTL investment should pay a commercial rate of interest that reflects the true cost to the Society of this type of lending. 4% is hardly a high rate compared to mainstream BTL mortgages.

NikiJ

Yes please Martin I'm desperate for some advice. I feel angry and sick to the stomach. How can they justify such a huge amount of money? I'm fixed in until next August at a rate of 6.06%. Paying an extra £250 a month will mean I will be losing money each month as my mortgage now significantly exceeds my rental income. A £4k early repayment charge means my hands are pretty much tied.

Can anyone think of any loop holes? Could I take a payment holiday to cover some of the period of increased rate? This just stinks of the immoral bank charges fiasco....

Please someone help!

Vincenzo

Thrugelmir wrote: »

The Nationwide most likely feel that Consent to Let is being abused by borrowers. As its not something they are obliged to allow but do. So hard to see what grounds for complaint are. People owning a BTL investment should pay a commercial rate of interest that reflects the true cost to the Society of this type of lending. 4% is hardly a high rate compared to mainstream BTL mortgages.

The grounds for complaint are clear, aren't they? Many people letting property on Nationwide residential mortgages will be accidental landlords. Those on fixed rates would have made their calculations based on the mortgage payments they knew were 'fixed'.

To change the terms within this period seems grossly unfair. It would be different if the change came into effect once a period of consent ended or it was outside a period of a fixed rate deal.

jacewuk

Thrugelmir wrote: »

The Nationwide most likely feel that Consent to Let is being abused by borrowers. As its not something they are obliged to allow but do. So hard to see what grounds for complaint are. People owning a BTL investment should pay a commercial rate of interest that reflects the true cost to the Society of this type of lending. 4% is hardly a high rate compared to mainstream BTL mortgages.

This makes no sense, if you are signing a new deal, then yes, they can add a charge. But to tell customers midway through a deal they will increase the charges by a whopping 1.5% is just plain greedy IMO.

If they dont want the business then they should allow customers to move their money away without incurring the early redemption fee. The fact they wont do this, just shows how greedy they are!

What's to stop them raising these fees to 2.5% next year and so on. It appears to be a legal way to print money!

payless

Totally agree
For cases that theyalready gave consent the loading/fee is unfair.

If the consent was for a fixed period and coming for renewal , or a new consent then the fee may not be so unfair

tdc101

I'm going to get stuffed by this! I got my letter this morning, and it makes a mockery of agreeing a fixed rate to manage cash outgoings.

FSA are more likely to take notice if they receive more complaints. Could someone post a copy of the mortgage T+Cs so I can submit a case to the FSA?

Thanks!

Tom

KarenBB

tdc101 wrote: »

I'm going to get stuffed by this! I got my letter this morning, and it makes a mockery of agreeing a fixed rate to manage cash outgoings.

FSA are more likely to take notice if they receive more complaints. Could someone post a copy of the mortgage T+Cs so I can submit a case to the FSA?

Thanks!

Tom

Before making a complaint to the Ombudsman you need to go through the complaints procedure at Nationwide. If you go to the ombudsman won't take the case until N'wide or any banks/ build soc has had a chance to resolve your complaint first of all. You could complain to N'wide and ask them for a full copy of your mortgage agreement in the complaint.

Dr_thick

BTL mortgages are not FSA regulated. It is luckly none of these mortgages are BTL! - since presumably the Society did not sell any mortgages to people wishing to let them. Hinges on definition of, "regulated mortgage contract" in FSA Handbook I would say.

tuetsu

I have a residential mortgage and lived in my property for 6 years before renting it out and moving in to my girlfriend's flat. Last week I received the letter for the additional letting interest rate which Nationwide called "changes to mortgage fees and charges". Very sneaky of them as I have a fixed rate mortgage and when I spoke to Nationwide they said technically my interest rate is not changing. Fair enough I said, but then I asked, so now mortgage fees and charges are based on the size of the mortgage? So the cost of Nationwide sending me a letter could be a lot cheaper than somebody with a £300,000 mortgage?!? Something's not right here!

payless

Dr_thick wrote: »

BTL mortgages are not FSA regulated. It is luckly none of these mortgages are BTL! - since presumably the Society did not sell any mortgages to people wishing to let them. Hinges on definition of, "regulated mortgage contract" in FSA Handbook I would say.

Yep thats the way I would see it