So called fixed mortgage

shar1f

Hi

Bought a 10 year fixed mortgage, stating i wanted a buy to let mortgage.

3.5 years down the road nationwide wish to increase my charges as i have a buy to let mortgage.

Any ideas, do I have a case for ? ie misleading me or ?

Please help

Wh05apk

Looks like you have a residential mortgage, so have been saving for the last 3 1/2 years.
I am sure they will argue you misled them in asking for a residential mortgage, how soon after you completed did you advise them you were renting?

shar1f

Hi

I informed them before taking on the 10 year fixed, proof being they know that I was planning to rent it out, hence the letter.

Pincher

I thought BTL was sold through the MortgageWorks,
whereas residential mortgage was sold through Nationwide.

hillcats

The original paperwork you signed must state which type of mortgage, surely?
Does the Key facts document mention BTL?

Do you still have paperwork from them where it clearly states your intention as BTL?
If you do have paperwork, you should be arguing with them that you disclosed all the facts and
they have failed to do it correctly on their side, so why should you be punished for their mistakes...

shar1f

Yes I know that now, nationwide dont do btl, but was unaware at the time

shar1f

hillcats wrote: »

The original paperwork you signed must state which type of mortgage, surely?
Does the Key facts document mention BTL?

Do you still have paperwork from them where it clearly states your intention as BTL?
If you do have paperwork, you should be arguing with them that you disclosed all the facts and
they have failed to do it correctly on their side, so why should you be punished for their mistakes...

yes I will try and find paper work, to see if anything is there, but again proof is also in the fact that why are they telling me they are going to raise charges because I had let it out.

This clearly shows that I had informed them of the fact that I will be letting it out.

And at no point did mortgage advisor say that the 10 year fixed can be changed at any time should I let it out.

Yorkie1

The technical explanation is that that fixed rate is not being changed. The payment which reflects your mortgage interest / capital is the same. If you moved back into the house the payment would be the same. It is the charges are being changed, to reflect added risk to Nationwide.

There are several long threads about this already on the forum, might be worth you looking at them for the different arguments and experiences of others.

Wakey2008

The fact the rate is fixed for ten years is irrelevant. If you do an unauthorised let, they will still honour the fixed rate but levy an extra charge on top for the added risk to the security that letting out brings.

Wakey2008

Sorrry didn't see Yorkie's post before I wrote mine. Yorkie is spot on.

dunstonh

And at no point did mortgage advisor say that the 10 year fixed can be changed at any time should I let it out.

No reason for them to do so unless they knew that you were going to let it out.

yes I will try and find paper work, to see if anything is there, but again proof is also in the fact that why are they telling me they are going to raise charges because I had let it out.

This clearly shows that I had informed them of the fact that I will be letting it out.

That isnt proof. Since a lot of the data on properties is now recorded on computers and in the public domain, the lenders and HMRC have been able to use that to see who is letting properties out. So, they may have picked it up from that. With it software driven and automatic, it would pick up changes and flag them up. That would explain the lag in this being picked up.

If your application states that you are intending to let out then you may have strong grounds. However, if it doesnt state that anywhere, then you have no evidence to support your claims.