Cheshire BS Change T&C's to Nationwide

CQCC

I really hope someone can help advise me.
I've had my 'repayment' mortgage with Cheshire BS since about Dec 2006, in 2009 i paid only £12 to switch it to 'interest-only', and then paid another £12 in 2011 to switch it back to 'repayment' (I'm currently on their SVR of 2.5%).

I received notification this month that from April 1st their fees are to change as they are part of Nationwide BS. In the future, it will cost me £75 to make the change, so i called to switch back to 'interest-only' and to set up a standing order for the 'repayment' part - so i can have the flexibility if i should need it in the future. HOWEVER, they have informed me that i can no longer switch to 'interest-only' as Nationwides criteria/LTV are a lot stricter, and you need to have £150K worth of free equity!! Who has this i ask?!

I have a good LTV and an excellent credit rating - can they do this??
Nationwide took over the Cheshire BS in 2008, so they say they have since bought all their T&C's in line with Nationwide, but these are not the T&C's i signed up for, and i already had my mortgage on interest only in 2009. They didn't say a word when i reverted back to 'repayment' in 2011, etc, etc.

Many thanks!

opinions4u

The original Cheshire T&Cs will almost certainly state a right to vary fees.

It's also unlikely that the original T&Cs give you any right to switch to interest only. That will be a concession at the discretion of the lender.

When I had an endowment mortgage my offer letter clearly stated (albeit several pages in) that my contractual monthly payment wasn't interest only, but repayment.

Regardless of Nationwide, had Cheshire managed to remain independent it's likely that they would be tightening their criteria to deal with changes to the regulatory environment and the economic times we live in.

If you don't like it, try remrtgaging to a lender who will allow interest only. You won't find it easy though.

Personally I'd be milking the low SVR to overpay my repayment mortgage.

ACG

Interest only mortgages have tightened up a lot since 2009.
It could be that the nationwides terms changed since then either by choice or to fall in line with FSA requirements.

The problem yo have is that companies are allowed to change their terms and conditions. You then have the option to accept them and carry on as normal or to decline them and move elsewhere.
If you have not read them then its deemed youve accepted them after 30 days from their introduction (i think).

So i think your choice is to stick with them and carry on or move.

Thrugelmir

Interest only mortgages have been tightened up in the past 2 months.

Totally at the discretion of the lender. However you will need to provide details of the alternative repayment plan when switching to interest only. So a repayment mortgage is probably your better option.

newbutold

Also bare in mind that if you are paying 2.5% you are on Nationwides BMR, which is a lot lower than their SVR @ 3.99%. You are only eligible for BMR if your mortgage was taken out pre 29.4.09, so think hard before you consider changing products.

As others have said I would be using this low rate to pay as much off your mortgage as you can afford.

Thrugelmir

newbutold wrote: »

Also bare in mind that if you are paying 2.5% you are on Nationwides BMR, which is a lot lower than their SVR @ 3.99%. You are only eligible for BMR if your mortgage was taken out pre 29.4.09, so think hard before you consider changing products.

.

Cheshire BS will have totally separate rates to the NW's.

newbutold

Thrugelmir wrote: »

Cheshire BS will have totally separate rates to the NW's.

OOps sorry, got myself confused with all the mention of nationwide T&C etc