Nationwide changing our T&C's during mortgage term

rob_hawk

Me and my wife have just accepted an offer on our house.

At present there are few houses available in the area we are looking to move so are considering moving in with my wife's parents for a few months to avoid losing our current buyer.

We are coming up to the end of our current fixed term deal (4th Feb) so went to discuss this with Nationwide today.

When we took out our Mortgage we were aware that should this happen we would have a 6 month holiday to find a new property.

Nationwide are now saying they have stopped doing this and if we sell before the 1st March we will have to pay the redemption fee of over £5k. They say the first of March because it's the end of the last month rather than the actual end date.

This has all changed during our fixed term contract. Can they do this?

We may lose our buyer over this and Nationwide have offered nothing other than paying the full fee. Any ideas would be greatly appreciated.

[Deleted User]

Was it within your t&cs that could have a 6 month grace period or was it just their policy at the time? What is the exact wording of the clause?

rob_hawk

I think it was just policy which is the problem I suppose.

I need to check the exact details of the contract when I get home later.

I don't think there is much we can do but I thought it worth asking for those with more knowledge of mortgages than myself. Just annoying because I wouldn't have taken my mortgage with them if I'd of known it would have changed.

kingstreet

I don't remember Nationwide ever doing what you are suggesting.

It is my understanding that in the event of a sale during an ERP period, you paid the penalty to repay the mortgage on sale.

You then had a period to find a new property, taking out a new mortgage with Nationwide, when you did. You had to port the old rate from the old mortgage, borrowing at least what you had outstanding before you sold.

On completion of the new mortgage, the penalty you paid was refunded to you.

dunstonh

This has all changed during our fixed term contract. Can they do this?

They are not changing the T&C. They may be changing a position they take on enforcing the T&C but that is all.

Leon_W

Most lenders refer to features such as the one you mention as a "concession" and usually form no part of a contractual obligation unfortunately.

kingstreet

Is the OP arguing that he shouldn't have to pay the ERP and get it back later, or is he suggesting they no longer offer non-concurrent porting, or is he suggesting the allowed gap is no longer six months, but a shorter period?

rob_hawk

From my understanding, Nationwide no longer offer the 6 month gap for me to re-instate my mortgage. Therefor I have to pay the ERC and then when I find a new property 3 months down the line start from scratch in regards to my mortgage. I'm gutted by this because it gives me even less equity in my current house.

What I am really failing to understand is that I took my house on the 4th Feb, 4 years ago. So this should run out on the 4th Feb 14, but I am being told the ERC is applicable until the end of the month. So it's only cleared by the 1st March for me to move. I had a 4 yr fixed term so why is it enforced for 4 years and almost a month?

ethank

Your KPI would have stated the ERC term, and in my experience this does not always match the anniversary of your mortgage commencing. In my case my ERC was for 2 years and my fixed mortgage was for 1 year 11 months. I am assuming it has something to do with the delay between my application and completion of the mortgage.

rob_hawk

ethank wrote: »

Your KPI would have stated the ERC term, and in my experience this does not always match the anniversary of your mortgage commencing. In my case my ERC was for 2 years and my fixed mortgage was for 1 year 11 months. I am assuming it has something to do with the delay between my application and completion of the mortgage.

Just got round to checking my agreement and it is until the end of the month. Not much I can do then, thanks for all the responses though.

ethank

Realistically do you think you will complete before End of Feb anyway?? I would try to persuade all to wait another four weeks to wait so I did not have to pay the ERC.