Nationwide Mortgage - Advise Needed

darkcloudi

In late 2008 I applied for a mortgage which was a 2 year fixed rate at 5.78% which began on the 2nd January 2009 and from the paper work I had it suggested and I quote "This interest rate expires on 31 December 2010". This paper work was from Nationwide with my Mortgage Arrangements.

Fast forward to now I receive a letter this month stating that my mortgage deal will end on 31st January 2011. I just gave them a call to tell them the details of my paper work that I signed up to and they advise the most recent letter they sent is correct, and the interest rate expires on 31 January 2011.

Ok - its one month that I need to pay the annual rate of 5.78% then it reverts to the BMR (now 2.5%). I am wondering do I have any arguments against what I signed up to and what I was told.

I am int he process of sending in a letter to there customer service team with a photocopy of my mortgage arragement recorded delivered to see what they can do but wanted some advise from the mortgage gurus out there.

Thrugelmir

If your mortgage commenced on the 2nd January 2009 then you haven't completed a 2 year fix term by the the 31st December 2010.

Mortgage companies for administrative purposes will always have mortgage terms that end on the last day of a calendar month.

Hence why yours finishes finally on the 31st January 2011. As the 2 year period ends on the 1st January. One day into the next calendar month.

dimbo61

Enjoy the lower rate when you go onto it and either save into cash ISA,s or overpay!

dwsjarcmcd

Thrugelmir wrote: »

If your mortgage commenced on the 2nd January 2009 then you haven't completed a 2 year fix term by the the 31st December 2010.

Mortgage companies for administrative purposes will always have mortgage terms that end on the last day of a calendar month.

Hence why yours finishes finally on the 31st January 2011. As the 2 year period ends on the 1st January. One day into the next calendar month.

Not always the case, many fixed rates are described as 2, 3 or whatever term of fixed rate when they actually end on a fixed date, which could be longer or shorter that the 2 or 3 year term depending on how long the case takes to complete. This is because it is easier for lenders to hedge to an end date than an open ended term.

It is entirely possible your fixed rate ends on either of the dates you quote but if you have the paperwork it is worth asking the question

herbiesjp

Nationwide is one of the lenders that starts the fixed rate from the day of completion - so it will be two years from that date.

darkcloudi

Thanks all for your responses, i've sent a letter to Nationwide customer services showing the mortgage arrangement letter that they sent me. Hopefully, with this it reverts to 2.5% on 1st Jan ensuring the Bank of England rate stays the same.

If Nationwide disagree and suggest my rate changes on the 31st Jan, would I be able to complain to the FSA since my letter states the interest rate changes on the 31st December as this is what I had been led to believe over the 2 years when I took out the mortgage?

darkcloudi

Just to give everyone an update - Nationwide got back to me on Friday 12th Nov and advised there computer made a mistake and my mortgage does end in December. Good thing I had the paper work