Nationwide "borrow back" - won't give me my money without telephone assessment

picky123

As you already know, new requirement, had no issue taking £10k overpayment back end of november last year for garage conversion.

I guess that he scheme is not really designed for multiple drawdowns of overpaymens. If you want to be sure of he flexability, then change to a proper set off mortgage

Tabatha_Kitten

Reading this has quite concerned me. Im a Nationwide customer too and was not aware of any changes.
I have about 7 months mortgage payments sat in my overpayment reserve from when I was on a 6% fix (now on the BMR). I was thinking of it as one of my emergency funds should the worst happen.
Do anyone know if they will still allow it to be used to make your normal mortgage payment - rather than drawing back a lump sum as in the op's case ?

TrickyDicky101

Tabatha_Kitten wrote: »

Reading this has quite concerned me. Im a Nationwide customer too and was not aware of any changes.
I have about 7 months mortgage payments sat in my overpayment reserve from when I was on a 6% fix (now on the BMR). I was thinking of it as one of my emergency funds should the worst happen.
Do anyone know if they will still allow it to be used to make your normal mortgage payment - rather than drawing back a lump sum as in the op's case ?

I am in exactly the same position. I am now considering withdrawing all my overpaid funds in advance of April and reinvesting elsewhere (so that I can still access them, should the worst happen as you so eloquently put it).

Your question is an interesting one - I suspect only Nationwide will be able to tell you for sure.

jamesml

If you think there is any chance you will need to use them in that way, get them out of there. It sounds like its bad enough trying to get money for normal spending as and when you want - if they think you need to use the overpayments to make normal payments because you are struggling financially, I would have thought alarm bells would start ringing. Better off getting the cash out, and then if you need to use it to pay your normal payments then you can and they will be none the wiser.

apples1

jamesml wrote: »

If you think there is any chance you will need to use them in that way, get them out of there. It sounds like its bad enough trying to get money for normal spending as and when you want - if they think you need to use the overpayments to make normal payments because you are struggling financially, I would have thought alarm bells would start ringing. Better off getting the cash out, and then if you need to use it to pay your normal payments then you can and they will be none the wiser.

That's pretty much what I was thinking. The one time you may need to get your money out will be the time they hear alarm bells and say no.

Tabatha_Kitten

jamesml wrote: »

If you think there is any chance you will need to use them in that way, get them out of there. It sounds like its bad enough trying to get money for normal spending as and when you want - if they think you need to use the overpayments to make normal payments because you are struggling financially, I would have thought alarm bells would start ringing. Better off getting the cash out, and then if you need to use it to pay your normal payments then you can and they will be none the wiser.

Totally agree. We fixed at just short of 6% just before rates plummeted so at the time it was a good place to keep some of the emergency fund because the terms stated it could be used to make normal payments of simply get it back at any time.
Now we've dropped to the 2.5% BMR I was thinking of moving it out anyway and this has pretty much confirmed my thoughts.

Lem

Am interested to hear if anyone has had success in getting their overpayments back as this is relevant to a relative of mine? Thanks in advance.

afly

Sorry to resurrect but as someone who was considering doing this, it is very alarming indeed! I can't believe they would be allowed to withhold those funds under any circumstances.

Too late for you apples1 sorry, but here are exactly the terms we agreed to (borrow back at bottom but full page provided for context)...

https://www.dropbox.com/s/p1wedb082f3ggzl/Screenshot%202014-07-01%2016.49.50.png

Please note the words "for any purpose you have in mind"

I wonder if the hoops are just a deterrent to put people off rather than them having any actual teeth to refuse access to your own money?

They may have apologists on here, but they don't have a leg to stand on legally.

Thrugelmir

afly wrote: »

They may have apologists on here, but they don't have a leg to stand on legally.

Suspect there'll be other contract clauses that give them a get out.