Nationwide Mortgage Issue

arab9893

Hi there,

Myself and my wife currently have a mortgage of £90,000 with Nationwide which has almost 5 years left on current deal at 6.2%. We are also looking to borrow a further £30,000 to consolidate some debts and make some home improvements. Our house is valued at £160,000.

We went to see the mortgage advisor at our local branch and we are a little concerned about the advice we have been given as he seemed to keep changing his mind about the different options, didn;t exactly fill us with confidence.

So what is happening now is we are changing our current £90k mortgage to a 5 year deal at 3.09% and the additional £30k we can get over 5 years at 3.49%. However he said what we can do is apply for the £30k first and if it is approved (it is currently with the underwriters for approval) then he will change the existing mortgage to the 3.09% deal.

However a different mortgage advisor is now telling us that he can;t do that. If the £30k is approved then we can't just change the original £90k to a new deal at 3.09%, we'd have to change the £90k and the £30k to a 3.09% which would mean another £1500 early repayment charge.

All a bit confusing I know. We are just a little worried that the guy at Nationwide doesn't know what he's doing. He told us that it should all be sorted out within a week and we're now at 3 weeks as they never received complete bank statements. They did and have obviously lost one of the sheets. Very frustrating!!

Are there any mortgage experts out there that can help please? Would be much appreciated.

Thrugelmir

Branch advisers will have no idea as to how long the underwriters at head office will take to process an application such as yours. As each case is individual and based on specific circumstances.

With the Easter holidays. Quite possible that the person dealing with your application has been on leave.

If you currently have a fixed term product. Then there'll be an early repayment charge to exit.

arab9893

Then the branch advisors shouldn't be telling customers it will take a week.

Our current deal has a £2600 repayment charge, however we will save much more than that by switching deals. But its more the fact that we have been told by someone else that we won't just be able to change our existing deal once we have applied for the additional £30k that is concerning me.

Thrugelmir

arab9893 wrote: »

Then the branch advisors shouldn't be telling customers it will take a week.

Customers expect to be told something if they ask a question

Thrugelmir

How much debt are you looking to consolidate?

arab9893

I didn't ask him how long it would take!! However customers don't expect to be told blatant lies if they ask a question. If I treated customers at my work the way some banks treat their customers I wouldn't have a business!

Thrugelmir

arab9893 wrote: »

I didn't ask him how long it would take!! However customers don't expect to be told blatant lies if they ask a question. If I treated customers at my work the way some banks treat their customers I wouldn't have a business!

A few days shouldn't matter. Unless the funds are required urgently. Better to focus on the real issue. Not trivial side ones.

arab9893

You clearly work for a bank and are not getting the original point of my post which is asking if we are receiving incorrect advice.

Now please leave it alone and let someone else post something helpful, thank you.

ValHaller

arab9893 wrote: »

You clearly work for a bank and are not getting the original point of my post which is asking if we are receiving incorrect advice.

Now please leave it alone and let someone else post something helpful, thank you.

Once you tell someone to go away, most other people tend to stay away. The fact that Thrugelmir is posting does not stop anyone else.

As for whether he works for a bank or not, well who cares? Clearly you are not getting the answer you want, but now, you are effectively telling people who work for banks to stay out. Who may be best placed to answer your question. Whatever your question might be.

I have to say that the only question you asked initially was

Are there any mortgage experts out there that can help please?

so it is fairly understandable if someone comes along and tries to get to grips with what your core question might be asking questions and going off down some blind allies.

Anyway, there are plenty of mortgage experts here, but the question of whether the advice you received is duff is really a specific Nationwide product rules question which you need to take up with them rather than a question of general principles. Of course one of the advisors is giving duff advice. But we don't know which one.

kingstreet

Nationwide has a rule.

You cannot opt out of a fix by paying the penalty to enable you to switch to a new rate with them. They simply don't allow it.

Your options;-

- leave the existing mortgage/rate alone and take additional borrowing at the rate offered

- pay penalty to Nationwide and remortgage to a new lender where you'll have all the borrowing on a new deal.

Watch out for transfer costs and fees if following the latter route.

If you followed the Nationwide salesman's "advice" you would end up with additional borrowing and the current mortgage with ERPs, then find out you can't change the existing mortgage after all. To remortgage, you'd then have two lots of penalties to pay!

Phone an institution three times and you may get three different answers.

kingstreet

Deja vu.