Nationwide Complaint

CPG92

Hi

We currently have a mortgage with Nationwide, which we were looking into porting when we move, however they declined us on the basis that we both use our overdraft, we have credit now, we had credit in the past, and even though we are going to pay it all off on completion, the fact we have needed credit in the past means we are likely to need it again soon. (a majority of our recent credit is due to us getting married last year, which will be a one off - we hope!!)

We then approached Halifax, with the same information and were given a DIP straight away. We found a property, put in the full application, and received our mortgage offer in the post only 8 days later.

As we now need to move from Nationwide to Halifax, we are going to be stung with an ERC. Do we have a leg to stand on to complain to Nationwide and ask them to waive the ERC on the grounds of being unreasonable when another lender was prepared to lend to us using the same information, or are we likely to be laughed at?

This is only the second time I have applied for a mortgage so its all quite new to me!

Thank you in advance.

TrickyDicky101

Being able to port your rate is entirely dependent on satisfying the existing lender's affordability criteria at the time you apply. I am afraid that your ability to pass another's criteria - even using what you consider to be the same information - has no impact on your existing lender.

You will still need to pay it.

kingstreet

Nationwide isn't a good fit for those who may be at, or near to the limit of credit cards and give the appearance of over-commitment, regardless of the commitment being repaid from the equity in their home.

A lender can choose not to lend to anyone, for any reason. The fact that another lender is willing to lend is fortunate but not a source for complaint.

Being able to port the rate from one mortgage to another is based on the lender being willing to lend to you again. In this case it isn't. IMHO a complaint will not see the penalty waived.

libf

You need to meet the new mortgage terms and conditions to port, so if Nationwide don't feel you do then they are perfectly within their rights to turn you down.

I have a Nationwide mortgage and originally wanted to port it, but because there will be a gap between sale (Sept) and purchase (Dec/Jan) I have to pay out the old mortgage and take a new one. Not ideal, but that's the terms and conditions so that's how it is.

mrginge

you don't fit nationwide's lending criteria. How Halifax choose to lend is nothing to do with nationwide.
the ERC is not nationwide skimming additional profit out of you, it's essentially their penalty to their lender that they pass on to you.
any complaint is likely to be pointless.

CPG92

Thank you all, as I thought