Trouble with Nationwide Mortgage Application Process - do we have a valid complaint?

lucybrown162

Hi
At the beginning of January we went to see our mortgage advisor, following putting an offer in on a house and following her advice, decided to go with a Nationwide tracker mortgage at a good rate. We applied then and there, gave the advisor all our documentation and received a decision in principle from the Nationwide on the same day.

Since then we have had numerous problems with Nationwide, meaning that today, 4 1/2 weeks on, we still haven't received the mortgage offer from them.

In summary our problems have been as follows:
- additional items of information were requested in addition to ones supplied at the outset - this was done in a very inefficient way, ie ask for 1 extra piece of information, application goes back in the queue, ask for 2nd piece of information etc
- Nationwide apparently lost part of our paperwork twice, holding the process up and meaning we had to fill in forms twice
- part way through the process of verifying our application, they put their rates up and we had to sign a new form with the new rate on
- they've just been very very slow to do anything, all the while we're at danger of being gazumped on our house as we're unable to exchange. All other paperwork etc has been set up with the solicitor and this is literally all we're waiting on.

My question is, does the above give us sufficient reason to make a complain to Nationwide and potentially claim for the following:
- compensation for time and distress caused (lots of distress!)
- waiving of application fees due to them not following their own timescale (2 weeks on website!) and not following 'good practice'
- reverting us back to the original lower mortgage rate quoted

If we have sufficient to claim for the above, what's the best way to approach it?

Thanks

kingstreet

TBH you aren't given any kind of guarantee as to how long the processing of an application might take. I've had cases take three days, I've had others take three months. It's annoying when additional information is requested in dribs and drabs, but there's not a lot you can do about it, other than vote with your feet and go elsewhere.

You can complain and request compensation. You may be successful, you may not. With no contractual obligation on their part you may simply get a small goodwill payment. Your chance of having the application fee waived is slim and none, in my opinion.

betmunch

Picking a new rate after 4 and a half weeks doesnt ring true to me.

You paid £99 to book a rate when you applied, this is the rate you should get. I had a case drag on 3 month with them and there was no issues with changing the rate.

As to the delays and general inefficiency I think you will be very lucky to get anything, its just how they are right now.

lucybrown162

Thanks Betmunch - to try and get the rate reverted back would I be best going direct to Nationwide or go via my advisor? TBH I've lost faith in my advisor as I'm now not sure why she didn't push back on the rate increase in the first place?

betmunch

Hmmm, tough one. I would suggest its the advisor really, but if you have lost faith in them I'm not so sure.

The thing is once you have reserved the rate, ie paid your 99 quid, then that should be the end of it, like I said my case that dragged on 3 months had the rate set as soon as I paid the £99. Due to the 3 months wait I warn clients about this when Nationwide is the cheapest and ask if they are prepared to take the risk of a 3 month wait to offer. Since then no-one has said yes so I must admit my knowledge is a little rusty round what exactly you are getting for your £99.

GMS

Your broker needs to take some responsibility here quite possibly.
I ask clients for passports, driving licences, 3 months payslips, latest P60 (or self employed SA302), 3 months bank statements, recent utility bill as a minimum. Usually this will be sufficient for a lender. If I have them on day 2 then the lender can have them with no delay or request to the client. Makes the application much easier for all concerned.

Nationwide held up a case of mine recently by requiring an employment reference despite having payslips. I chsed this every 48 hours and had very little problems.

What were the items Nationwide requested?

The broker should never have allowed a case to drag on like yours has and the rate should have been reserved.

lucybrown162

Hi GMS - we actually took all of those with us to our meeting with the broker to ensure that it could be processed on the same day. The initial items Nationwide then requested were a reference from my employer (as a recent pay rise wasn't showing on my payslips, although I had given the broker a signed letter confirming the pay rise) and a further 3 months bank statements, and proof of our deposit.

We repeatedly chase our broker, who then chases the Nationwide but it just seems to have been a catalogue of errors and delays, but we can never be entirely sure if our broker is at fault or the Nationwide.

betmunch

I suspect the delays in general are due to Nationwide.

With GMS confirming the rate is reserved with the £99 I am getting the feeling the Broker failed to do this, which would mean you have no way of getting the original rate.

Looks to me like the Broker was too slow to put the case on the Nationwide system, but then Nationwide have confounded it with their own delays.

lucybrown162

betmunch wrote: »

I suspect the delays in general are due to Nationwide.

With GMS confirming the rate is reserved with the £99 I am getting the feeling the Broker failed to do this, which would mean you have no way of getting the original rate.

Looks to me like the Broker was too slow to put the case on the Nationwide system, but then Nationwide have confounded it with their own delays.

Hi Betmunch - I suspected that may be the case as the £99 wasn't taken straight away, however we do know the application was submitted to the nationwide the next working day after our first appointment with the broker (2 weeks before we were informed the rate had increased), as nationwide asked for further documentation from us the very next day?

I'm just not sure where we stand.

betmunch

Well the £99 has been taken, as far as I can see your getting whatever rate that £99 was spent on.

Did nationwide ask you for further documentation? Or did your Broker as for further documentation? Literally who asked you for the items?

It may be that the Broker was asking for something to confirm income for example before submitting the case, which would have meant a delay, the product could have changed in the mean time, we are lucky if we get more than half a days notice of changed products these days!

Horizon81

Has the OP been unlucky or are Nationwide not paticularly efficient? Compared to some lenders I've been in touch with lately, Nationwide have always been easy to get through to, both in branch and in their call centres. I guess there's good and bad storeis for all lenders.