Nationwide fixed rate mortgage problem

macca789456

Nationwide fixed rate mortgage. Has anybody had any joy with getting out of a fixed rate mortgage with the Nationwide We have offerred to pay the early repayment charge and tried to switch to a new deal but been told there is no new deals available for people on fixed rate deals, but we can pay the E R C and go elsewhere Our L T V IS 10%. I thought that was the point of having E R Charges .

_Andy_

They don't have to offer you anything. If you want to change lenders then do.

kingstreet

The early repayment penalty is designed to reimburse the lender for the extra payments it will have to continue to make on that part of the swap deal which includes to your mortgage.

They have no alternative but to accept your right to pay the fee and allow you to repay that mortgage. They don't have to offer you a new one to assist you in what you're trying to do though.

DFW2

I wondered the same this am, we have about 10months left of our fix with them, there are new fixes available for existing customers on their website but only if you have three months or less left to run. Have you heard anything else since? I don't really want to change lenders but we may have to seriously consider it.

somethingcorporate

Why can you not let your existing deal run? seems silly to pay the early redemption when you only have less than a year to avoid it.

plumtreebabe

We have a fixed rate with the Nationwide - have a look at the rate you go to when the fixed rate ends, in our case it is more favourable than any on the market and if you switch you will lose it.

macca789456

Hi the fixed rate deal we took was a ten year fixed rate and we are 5 years into it. The tems and conditions we agreed to clearly state that we can pay the early repayment charge and transfer to another product, but the Nationwide are saying they dont have any products available for people on a fixed rate when they are advertising them and have lots of online offers.New customers are being treat better than existig customers it seems. We have contacted the ombudsman and our complaint is going to be looked at by them. Other banks and building societies do not take the same stance with there customers.

Thrugelmir

macca789456 wrote: »

.New customers are being treat better than existig customers it seems.

No, as new customers will drop onto the SMR of 3.99% at the end of the fixed product term.

Existing customers that qualify drop onto the BMR of 2.5%.

The Nationwide will argue that the BMR rate will lose them money. So the ombudsman will rule in the NW's favour as it won't interfere in commercial decisions.

The NW is in effect blocking you move onto the BMR.

macca789456

I do not agree that the ombudsman will rule in Nationwides favour as it is not about commercial decisions it is about agreed terms and conditions that Nationwide are manipulating in there favour. Also i do not think as an existing customer that the B M R will still be at 2.5% when my fixed rate ends in 5 years time.Do not forget E R C's are factored in to a fixed rate deal to cover the cost to Nationwide for people leaving there deal early.Also new customers might not opt for a fixed rate deal so what you are saying about them dropping onto the S M R of 3.99% would not apply. Apparently these changes were brought in in 2009 i was told by Nationwide but i was not notified that they had altered things, i find that very strange as usually they sent loads of duplicated similar changes through the post.

Thrugelmir

macca789456 wrote: »

I do not agree that the ombudsman will rule in Nationwides favour as it is not about commercial decisions it is about agreed terms and conditions that Nationwide are manipulating in there favour.

The Directors of the Nationwide are duty bound to run the society under the Building Societies Act 1985. So commercial decisions will take precedence.

Don't overlook the fact that the NW are under no obligation to offer you a new mortgage.

Also i do not think as an existing customer that the B M R will still be at 2.5% when my fixed rate ends in 5 years time

That's opinion not fact.

Do not forget E R C's are factored in to a fixed rate deal to cover the cost to Nationwide for people leaving there deal early

That applies to the current product only. Not to any future transactions.

macca789456

My terms and conditions clearly state i can transfer to another product if i pay the E R C it does not state there will or might not be any products available.