Switching from Nationwide to The Mortgage Works

SuzieGirl

What do you think of this?

When I decided to look into re-mortgaging my current property to benefit from lower interest rates, I was advised by Nationwide that, as long as I keep my mortgage with Nationwide, I could switch to a better rate and the early repayment charge on my current mortgage deal would be waived (approx £1500).

Now I am remortgaging with The Mortgage Works (TMW) for a Let To Buy (LTB) mortgage and I've been told that the fee cannot be waived as TMW are a completely separate company.

I think this is nonsense:
The name of Nationwide is used extensively on TMW's website which clearly they use to engender trust in a long-established company; I was called by someone from Nationwide to arrange the valuation of my property; If you fall into arrears there's a Nationwide email address.
Even the registered office is Nationwide House! Clearly it is a separate branch from the main business but no way is it a totally separate company.

I think this decision is not fair as they are, essentially, keeping me as a mortgage customer and making a profit from my business just as if I'd taken out a regular Nationwide mortgage with them. The interest rates are far higher too so they are making even more profit than on their regular mortgages.

The big problem is that TMW have pretty much cornered the market on LTB from what I can understand so I can't threaten to take my business elsewhere.

I've written a "deeply disappointed" letter to Nationwide and I'm awaiting the outcome.

I appreciate your views.
Thank you
Suzie

herbiesjp

Other lenders agree LTB scenarios as long as you fit criteria.

TrickyDicky101

TMW is a subsidiary of the Nationwide and thus is a separate legal entity from the Nationwide. So I would say they are obeying the letter but maybe not the spirit of their rules.

Thrugelmir

SuzieGirl wrote: »

Now I am remortgaging with The Mortgage Works (TMW) for a Let To Buy (LTB) mortgage and I've been told that the fee cannot be waived as TMW are a completely separate company.

I think this is nonsense:

Unfortunately your whole rational is nonsense. The entities are totally separate companies for legal and financial purposes.

[Deleted User]

Hi,I currently have a 78k fixed rate at 5.34% with 10 months left to run. Im porting my Nationwide mortgage to a new property & taking an addition 20k which will be at a lower rate. Does this mean & can transfer the rest over without the ERC.

Where did you hear about that??

kingstreet

funk_punk wrote: »

Hi,I currently have a 78k fixed rate at 5.34% with 10 months left to run. Im porting my Nationwide mortgage to a new property & taking an addition 20k which will be at a lower rate. Does this mean & can transfer the rest over without the ERC.

This seems to be a particularly difficult concept for lenders to explain to their customers. I've never had a problem explaining it to mine, nor have I ever had anyone misunderstand its purpose.

Porting is transferring an old rate to a new mortgage. You apply for a whole new mortgage for the total amount you need, in the normal way. You satisfy the lender's criteria and loan to value requirements and when they agree to lend you what you need, they will allow you to transfer the rate from your current mortgage to your new one, when your old property sells and your old mortgage is repaid. This is how you avoid early repayment penalties.

The transfer of the old rate is limited to the amount outstanding at completion and for the remaining time of that rate offer. So if you had a £78k fix with 10 months left, you'd transfer that rate for the first £78k of the new mortgage for that 10 month period. Any extra borrowing would be offered on one of the lender's current products. A reduction in the mortgage would see the payment of a proportionate penalty, should there be any remaining early repayment penalty applicable.

In the case of Nationwide, they can set the terms for the new mortgage however they like as portability gives no guarantee of the terms and conditions which might apply to the new mortgage. All you can be sure of is getting how much you now owe on the rate you currently have on your existing mortgage.