Problems switching to new fixed rate

qaklush

Just wanted to get some advice while our problem is (hopefully) being sorted out as I type....

my husband and I were on a 2 year fixed rate of 4.95% with Nationwide which ended 30th April this year. In January (because of the rate rises) we approached our local Nationwide branch about securing another fixed rate to kick in after our current one ended (this was also important because I was made redundant last year and I am pregnant with our first child due in two months so we knew we had to keep the mortgage payments as low as possible because of extra outgoings).

We decided to switch to another 2 year fixed rate of 5.14% which was to start 1st May (at a fee of £799 which we added to the mortgage as couldn't afford to pay upfront). We were posted forms to sign and duly returned copies in February to the branch. Everything was set in place and all we had to do was wait for the new rate to kick in. Luckily for us I went online to check our mortgage statement yesterday and was a bit shocked to say the least that instead of the 5.14% rate we were now on their Base Rate of 6.74% until 2030. Also I had made a note of our balance the week before and now it has gone up by £142.

I phoned Nationwide's main call centre and informed them of the mistake. They got in contact with the branch who in reply informed them that they didn't know why the product had not switched to new rate and that they couldn't find our original signed copy of agreement (which should of been scanned into the system...we still have our copy!). We were told another agreement would be posted out and that we would receive a call from the branch (still waiting on both).

I queried what would happen to our payment for this month which will come out by direct debit around 21st May and was warned we may have to pay more this month but any overpayment will be credited back to us. I am unhappy that such a mistake could happen as we secured the rate end January and paid £799 for the privileage and now we are faced with a big mortgage payment this month (although I hope this is not the case as we warned them early enough so they can rectify it). Just as well I checked our statement online otherwise the situation could have been worse.

Is this kind of mistake common or should we be worried?

Caroline

KTF

Sounds like they made a mistake and are going to put it right as soon as they can.

When did you last contact then? If its been more than a few days I would chase them for an update.

qaklush

KTF wrote: »

Sounds like they made a mistake and are going to put it right as soon as they can.

When did you last contact then? If its been more than a few days I would chase them for an update.

It was yesterday so will contact them again tomorrow but just wanted some advice in the meantime if this could possibly cause us any problems with this month's payment (i.e. had anybody else been though the same situ). I'm sure it will be sorted as we got our mortgage from them and I'm sure they don't want to loose our custom but still an inconvenience which could possibly leave us struggling with our budget this month (especially if we get another Bank of England rate rise before they do sort it out :mad: )

KTF

I would assume that this months payment is larger than normal to be on the safe side but there is still a few weeks before the payment is due to be taken.

If this is going to be a problem then I would suggest calling up your bank and explaining the situation. If you bank with Nationwide as well then I would expect them to be helpful.