Nationwide Mortgage - new fees and charges

PiggyBank01

Vincenzo wrote: »

...From some of the posts on here it sounds as though this was not always the case and consent was given without reference to a time limit. Is this your experience?

Yes, that was my experience.

I rang them up just over two years ago enquiring about letting my property. They said no issue, just complete a form and send it back to us which I duly did with no mention of a time limit to the consent either verbally or on the form.

About 6 months later I moved to a 5-year fixed product under the illusion it would give me financial stability (as no consent time limit was ever mentioned) and all I needed to worry about was to keep the house let.

Jo_anne_2

I am puzzled about the charge for reducing the term of your mortgage - does this mean if you make an overpayment of £500, and have opted to have the term reduced rather than reducing the monthly payment, that they will charge £20 fee each time?

Yorkie1

Jo_anne wrote: »

I am puzzled about the charge for reducing the term of your mortgage - does this mean if you make an overpayment of £500, and have opted to have the term reduced rather than reducing the monthly payment, that they will charge £20 fee each time?

No, the leaflet explicitly states that overpayments which reduce the term do not count for the purposes of this fee. The charge relates to the situation where you complete a form to apply to amend the length of the term.

Vincenzo

tombooth01 wrote: »

Yes, that was my experience.

I rang them up just over two years ago enquiring about letting my property. They said no issue, just complete a form and send it back to us which I duly did with no mention of a time limit to the consent either verbally or on the form.

About 6 months later I moved to a 5-year fixed product under the illusion it would give me financial stability (as no consent time limit was ever mentioned) and all I needed to worry about was to keep the house let.

tombooth, this could be the case for you too....

https://forums.moneysavingexpert.com/discussion/comment/33530791#Comment_33530791

If so you just need to apply for consent before September which will be granted for 3 years with no extra charges.

PiggyBank01

Vincenzo wrote: »

If so you just need to apply for consent before September which will be granted for 3 years with no extra charges.

Vincenzo, interesting... I hadn`t seen that thread. I`ll definitely try it.

Unfortuntely with all this uncertainty we`ve started our plans to move back into the property but I`ll see about renewing the consent before September to give us another option if the move back doesn`t happen immediately.

Thanks for your help Vincenzo

KarenBB

I've posted the post below on the other thread but I'm duplicating it here for anyone only reading this thread.

I know what I'm about to say disagrees with what posters have been told by Nationwide but I'm not sure the people on the phones are correct when they say if you're already letting, you've gone past the original 3 years and your apply again you won't be charged the 1.5% fee. Reading the leaflet with the letter I think they've given the wrong information.

The leaflet says "If our records show you have been renting out the property for 3 years or more as at 1 December, the additional letting interest rate will be applied" I think if you applied to let your property 5 years ago the consent may have expired (without your knowledge) but N'wides records will show that the property has already been let for 5 years and I don't think they'll wait until a second 3 years expires before charging the extra 1.5%. My interpretation of the leaflet may be wrong but I'd suggest getting written confirmation that if you are already letting and apply again the charge won't be enforced for another 3 years. Hope I'm wrong for anyone on a fixed rate.

tom - I think if you stopped letting the property and moved back in and then started letting it out agin before September you'd get another 3 years. That's one thing if you've not got tennants in the property at the moment but a lot of hassle if you have. Hope it all works out for you. K

Vincenzo

KarenBB wrote: »

I've posted the post below on the other thread but I'm duplicating it here for anyone only reading this thread.

I know what I'm about to say disagrees with what posters have been told by Nationwide but I'm not sure the people on the phones are correct when they say if you're already letting, you've gone past the original 3 years and your apply again you won't be charged the 1.5% fee. Reading the leaflet with the letter I think they've given the wrong information.

The leaflet says "If our records show you have been renting out the property for 3 years or more as at 1 December, the additional letting interest rate will be applied" I think if you applied to let your property 5 years ago the consent may have expired (without your knowledge) but N'wides records will show that the property has already been let for 5 years and I don't think they'll wait until a second 3 years expires before charging the extra 1.5%. My interpretation of the leaflet may be wrong but I'd suggest getting written confirmation that if you are already letting and apply again the charge won't be enforced for another 3 years. Hope I'm wrong for anyone on a fixed rate.

tom - I think if you stopped letting the property and moved back in and then started letting it out agin before September you'd get another 3 years. That's one thing if you've not got tennants in the property at the moment but a lot of hassle if you have. Hope it all works out for you. K

LOL - hello again Karen! I will post here too as not everyone reads both....

I read and interpreted it the same way, which is why I was surprised that the fees would not apply to my mortgage (I recently obtained a second period of 3 years CTL).

I will have been letting for almost 4 years by December but I have it confirmed that the fees will not be charged until the 3 year CTL (6 years in total) expires. It makes sense as it would be rather unfair to give 3 years consent with no fees and then add fees within the same time period.

KarenBB

If they have confirmed that in writing that's great Vincenzo, I'd only read of posters getting that information on the phones and I'm a bit untrusting of information on the phone as it's so often wrong, especiallyy when it appears to disagree with something I've got in writing. OH finds it frustrating at time that I like to dot the i's and cross the t's but at least I know where I am with things.

Vincenzo

KarenBB wrote: »

If they have confirmed that in writing that's great Vincenzo, I'd only read of posters getting that information on the phones and I'm a bit untrusting of information on the phone as it's so often wrong, especiallyy when it appears to disagree with something I've got in writing. OH finds it frustrating at time that I like to dot the i's and cross the t's but at least I know where I am with things.

It was actually in the original letter I received. I quite agree with you though, until it is in black and white you cannot bank on it!

Poppy_Kennedy

Hey Vincenzo

I did post on the other thread earlier but cant find it

but im a bit confused and want to be clear because i write to Nationwide

Their letter to me says:

records show that as at December 2010 you will have been renting for 3 years or more and the additional interest rate will be applied blah blah

so just to clarify what was mentioned on the other thread, if i write to them to say that my 3 years CTL has expired please can i reapply for another 3 years, and do this before September, than it means i shouldnt be charged the extra interest rate fee?

Sorry if i am being dim but wanted to get this right

thanks alot