Nationwide won't allow me to leave £1 on my mortgage

Thrugelmir

pencekeeper wrote: »

Yeah right. Thanks a bunch.

And your problem is?

pencekeeper

My issue is that instead of having the ability to borrow back the overpayments I have made (which I was told I could do when I switched to this mortgage product and then again when I overpaid), the mortgage will be closed and I'll have to go through a whole new mortgage application process.

Additionally, I do not accept the explanation in the letter as being truthful. I do not consider removing the borrow back facility I was promised as in any way related to Nationwide concerns regarding shrinking membership benefits. This makes things worse not better (unless you are Nationwide).

Apologies for not being clear about this - I thought it was self evident but I recognise my post could have explained this.

kingstreet

Lenders don't want people to be able to borrow money without being subject to the usual affordability checks.

If necessary, find out how much you do have to be in debit (£100?) for the account to stay open, to retain your ability to re-draw overpayments.

ViolaLass

Brighty wrote: »

I have 2 nationwide mortgages, 1 taken out in 2002 on a property i now let, and one on my current home taken out a few months ago.

I have used the 'borrow back my overpayment pot' facility on the old mortgage twice now, the most recent was under a year ago and i was under the impression that as the deal was taken out before 2010 i could carry on doing it whenever i like.

The new mortgage taken out this year, i was specifically told that this feature had been removed from any new mortgage after 2010, so cannot have that feature, although i can still take a payment holiday up to the amount of the overpayment pot.

Brighty

That's so strange. I have it in writing that I can borrow my overpayments back - I'm beginning to wonder whether I shouldn't have been allowed this but since I have it on paper, I'm happy.

dunstonh

In buying my mortgage product, I feel that these features were strongly represented by staff as being 'garanteed forever'.

The credit crunch taught us a lot. The word guarantee is now treated very differently to how it was pre credit crunch. However, if you have documentation that shows it was guaranteed then you would likely have a strong case for it being available to you.

I am now going to the Ombudsman and also seeking legal advice.

If you won the complaint then why would you go to the ombudsman?
Also, if you are seeking legal advice/options then the ombudsman will withdraw it's services.

I have been told that I am the only person that has complained about this.

Thats the problem with being in a minority when decisions like this are made.

Kildare

kingstreet wrote: »

The option to re-borrow overpayments ended in March 2010 as well.

All part of the tightening of criteria to prevent people being able to borrow without affordability checks.

I thought this facility was still available as well - especially for those of us on the BMR. It's one of the reasons I'm planning to port my mortgage to the new property and take out further borrowing...

kingstreet

If you do not change your mortgage, it remains open to you.

However, if you move house, you repay the old mortgage and a new one starts and it's my understanding the redraw facility is then lost.

You can always ask them if you keep it as part of the terms of the port, as the website is not clear on that;-

Flexible benefits for existing borrowers

If your client has made overpayments on an NBS mortgage where the product was taken out prior to the 4th March 2010, they may be able to borrow it back or take a break from repayments for 3 to 12 months.

Borrow Back

If your client has built up an overpayment reserve they can borrow back any amount up to the limit of that reserve for any purpose.

If your client chooses to borrow back their outstanding balance will be recalculated at the next rate change, or at the end of the year (whichever is first).

The new calculations will ensure the mortgage is repaid in full by the agreed date.

Terms & conditions apply.

BillTrac

happyshopper wrote: »

I am in the fortunate position to be able to pay off my mortgage (after much scrimping and overpaying for the last few years). Today I rang my mortgage provider Nationwide to ask for a redemption statement and to check that I can leave £1 on the mortgage, to be told that they no longer offer this facility. This has changed since Feb 2013 when I last enquired and I will now have to pay off in full.

My mortgage with NW finished in September(I am MF :T) but because my bank statements are quarterly now I didn't realise the DD was still running and hadn't had a redemption letter.

When I spoke to the local branch they printed me off a redemption letter it mentioned about leaving £1 in your account but that was for insurance not remortgaging purposes

asturdy2

iam currently in the process of moving with nationwide have a current lifetime tracker taken out in 2006 with all the flexible features and am taking out a new mortgage for the extra amount. In the t & cs it states that the 2006 mortgage maintains the ability to borrow back overpayments, in fact I had to "borrow back" my overpayments before I could do a mortgage application. The new mortgage doesn't allow me to borrow back.

Kildare

kingstreet wrote: »

If you do not change your mortgage, it remains open to you.

However, if you move house, you repay the old mortgage and a new one starts and it's my understanding the redraw facility is then lost.

You can always ask them if you keep it as part of the terms of the port, as the website is not clear on that;-

Thanks for this - I have my appointment with them on Friday to sort the new mortgage / port existing, so will definitly ask and let you know what they say! I didn't realise before that I'm not taking the original mortgage with me as such.