Fixed Rate - Mortgages has Increased

robertdon777

Hi There

First post so go easy!

I had a 10 year fixed rate mortgage with the Cheshire taken out 8 years ago. All happy etc when the Nationwide purchased the Cheshire approx 4 years ago.

After about 2 years of ownership the Cheshire mortgages were all ported over to the Nationwide and we became official Nationwide customers with Nationwide Mortgages.

With this came letters regarding the mortgage I had and the payment plan with all payments on for the outstanding term etc.

2 months ago I received a letter from the Nationwide stating they planned to increase my monthly payments (only £1.22 a month). I called them the same day to ask why...finally after 2 months and 4 calls from they they still stand by their increase.

They say its the way they calculate interest compared to how the Cheshire used to. I'm still not happy with this and feel that I signed up for a fixed rate over a fixed term for a fixed amount. Somewhere along the line fixed appears to be slightly variable.

They have offered £50 compensation which more than covers the 2 years remaining @ £1.22 a month, but i rejected this and am in the process of moving the mortgage to someone else.

The trouble I see is if they do this to say 500,000 fixed rate mortgage customers and no one questions it, they stand to make a good deal of money over a year.

Is it worth sending to the Financial Ombudsman to ask them to request The Nationwide to put an asterix next to all the printed matter and website term FIXED (ie Fixed* - *could mean variable if we use a different calculator this year)

Sorry for the long first post

Rob

Thrugelmir

robertdon777 wrote: »

Is it worth sending to the Financial Ombudsman to ask them to request The Nationwide to put an asterix next to all the printed matter and website term FIXED (ie Fixed* - *could mean variable if we use a different calculator this year)

Why waste peoples valuable time? You've received due compensation. The NW is unlikely to reprogramme it's systems at a huge cost for which will be a diminishing number of legacy mortgages.

Okydoky25

Would you not waste even more money moving your mortgage whilst still n your fixed term?

robertdon777

Okydoky25 wrote: »

Would you not waste even more money moving your mortgage whilst still n your fixed term?

No not at the fixed rate it's on. The 2K payment to get out is covered within a year by the lower rates on offer from any high street bank/building society.

Fingers crossed their fixed rate means fixed rate.

robertdon777

Thrugelmir wrote: »

Why waste peoples valuable time? You've received due compensation. The NW is unlikely to reprogramme it's systems at a huge cost for which will be a diminishing number of legacy mortgages.

Because the principal of a fixed rate with a fixed term on a fixed sum is exactly that. But to the NW it obviously isn't, even though I have a letter with the details of the remaining 48 payments in B+W (after the mortgage had been ported).

I've been a customer with the NW for over 10 years on fixed rate and with the Cheshire for 6 on a fixed rate and never before has someone changed my payment amount to suit a new calculation.

I didn't sign for any new payment and certainly didn't agree to my fixed payments being variably increased.

jacobtheamish

robertdon777 wrote: »

Because the principal of a fixed rate with a fixed term on a fixed sum is exactly that. But to the NW it obviously isn't, even though I have a letter with the details of the remaining 48 payments in B+W (after the mortgage had been ported).

I've been a customer with the NW for over 10 years on fixed rate and with the Cheshire for 6 on a fixed rate and never before has someone changed my payment amount to suit a new calculation.

I didn't sign for any new payment and certainly didn't agree to my fixed payments being variably increased.

I'm assuming this is due to the way NW calculate interest, you are no doubt a very highly principled person I applaud you for that but its nonsensical to cut your nose off over £1.22. Considering you have been offered compensation as well, makes me wonder whether you specifically go out of your way to look for an issue. Come on, life is surely too short for this

robertdon777

jacobtheamish wrote: »

I'm assuming this is due to the way NW calculate interest, you are no doubt a very highly principled person I applaud you for that but its nonsensical to cut your nose off over £1.22. Considering you have been offered compensation as well, makes me wonder whether you specifically go out of your way to look for an issue. Come on, life is surely too short for this

Complete the opposite really, that's why I like things as simple as can be liked a fixed rate etc. I have better things to do than worry about mortgage rates going up/down etc.

It is out of principal, not once have they just said oh sorry we will keep the payments the same as it's our fault for changing how we calculate the interest, we cocked up, we will take the hit.

The daft thing is they offered me more than what the increase is overall anyway in the compensation. The whole telephone manner of the NW is just wrong, I keep stating Fixed and they reply "well with the new way of calculating"??? Its Fixed, what does fixed mean, 8 years in and you change it without the customer being able to do anything about it...This to me doesn't sit well as a consumer and as a good customer, it really doesn't and there are plenty more Providers that are very willing to take my hard earned off me, so I'll give them a try.

ViolaLass

The interest rate is fixed, not the payment - I would love to know the details of how their calculations are different.

robertdon777

ViolaLass wrote: »

The interest rate is fixed, not the payment - I would love to know the details of how their calculations are different.

Me too. Why send out a payment plan for the remaining payments on the fixed rate clearly stating what I will be paying and then change it with 2 years to go?

R_P_W

robertdon777 wrote: »

Complete the opposite really, that's why I like things as simple as can be liked a fixed rate etc. I have better things to do than worry about mortgage rates going up/down etc.

It is out of principal, not once have they just said oh sorry we will keep the payments the same as it's our fault for changing how we calculate the interest, we cocked up, we will take the hit.

The daft thing is they offered me more than what the increase is overall anyway in the compensation. The whole telephone manner of the NW is just wrong, I keep stating Fixed and they reply "well with the new way of calculating"??? Its Fixed, what does fixed mean, 8 years in and you change it without the customer being able to do anything about it...This to me doesn't sit well as a consumer and as a good customer, it really doesn't and there are plenty more Providers that are very willing to take my hard earned off me, so I'll give them a try.

Has your rate changed? No? Thought not.

kiddakidda

I totally understand your principals regarding the matter and if I'm honest it would get right up my nose as well.

But then I would take a step back and let it go, the compensation covers it and you can vote with your feet/business when re-mortgage time comes around.