Trapped and Exploited by Nationwide

Trapped1

This is the situation. We were mis-sold an EQUITY RELEASE MORTGAGE by a broker. The Broker has paid us compensation but we have a short fall on paying off the mortgage. This is our only asset we have and like any other family we wanted to leave it to our children. My daughter is selling her home to raise as much money as possible, but we still have a shortfall. We are trapped in this high rate rolled up interest only mortgage which is increasing by a £1000 per month and by the time we die, there will be nothing left.
Nationwide are saying it is nothing to 'to do with them and that we can stay in our home until we die'.


The Nationwide have not offered any help whatsoever. We asked if the Nationwide could freeze the interest whilst our daughter's home is being sold and they refused (the mortgage has increased by a further £12k since we started communicating). We have offered a reduced lump sum payment to clear the mortgage and the Nationwide refused. The Nationwide still would have had a very healthy profit for its members, easily above regular interest rates

In error Nationwide sent us 'confidential emails', which were utterly shocking and mocked our children. The emails also included confidential and sensitive information/details about other clients who had been mis-sold the same product!!

We wrote back to Nationwide informing them of the emails and pointed out 'why should Nationwide members benefit from an expensive product that had proven mis-sold' and that they are exploiting our unfortunate situation. The response from Nationwide was very negative and wanted to give us £350 for the distress caused by the emails and for us to return them to them in a pre-paid envelope, and again no offers of any help to resolve our situation.

We are utterly disgusted at their cold attitude by their Members Relations Manager and lack of morals on what is reported as a 'bank that is trusted and respected by people'.

Please can anyone advise is there anything we can do. We can’t seek help from the Omsbudsman as this the mis-selling took place prior to 2004.

libf

Why is your daughter selling her house? It would make more sense to sell your house, pay off the mortgage and either downsize or rent.

csgohan4

Will the FCA/ Ombudsman be any help in this scenario?

Trapped1

The Ombudsman have looked at the papers and agreed it has been mis-sold but couldn't help because the mortgage was taken out just before new governing regulation came about in 2004. The mis-selling part is resolved but it was impossible to put us back into the same position, ie a small interest only mortgage because of our ages.


We are asking Nationwide to help us and they are not interested. Their 'confidential and sensitive emails' stated "we have done nothing wrong so why should our Members lose out?" Basically they are gaining £1000 per month in rolled up interest. The interest rate is 6.75%.


All the time we are trapped with mortgage Nationwide gain £1000 extra a month.

Trapped1

We have lived in our house for over 40 years and we don't want to leave it. We want to keep it in the family after we have passed, it is a lovely family home.


Even if we were to change our mind, I don't even know if we are allowed to sell it. We were never explained anything about the product. The mortgage broker arranged the solicitors and the solicitor never explained anything to us about the product.

alchemist.1

When were you paid compensation for the mis selling of the mortgage? Why wasn't this issue addressed at that point?

silvercar

The Broker has paid us compensation but we have a short fall on paying off the mortgage. This is our only asset we have and like any other family we wanted to leave it to our children.

Could your daughter raise an additional sum on her property, to clear the shortfall on yours? That way, you keep your home mortgage free and she keeps hers. You could then make monthly payments to her to help towards her increased mortgage.

libf

Trapped1 wrote: »

We have lived in our house for over 40 years and we don't want to leave it. We want to keep it in the family after we have passed, it is a lovely family home.


Even if we were to change our mind, I don't even know if we are allowed to sell it. We were never explained anything about the product. The mortgage broker arranged the solicitors and the solicitor never explained anything to us about the product.

Unless you're in negative equity then you can sell, and therefore aren't trapped.

silvercar

libf wrote: »

Unless you're in negative equity then you can sell, and therefore aren't trapped.

Not always. Sometimes the terms of the loan would not allow a sale while the mortgagee is alive and doesn't need to move into care.

Thrugelmir

Trapped1 wrote: »

We have lived in our house for over 40 years and we don't want to leave it. We want to keep it in the family after we have passed, it is a lovely family home.

You were happy to release equity (cash) to spend.

The Nationwide have not offered any help whatsoever.

I'm not aware of any reason why they would. As you have to accept responsibility for your original decision. Just happened that the Nationwide were the provider at the time.

Trapped1

We did not want any cash and but was advised to take out this money to avoid inheritance tax. We do have the original lump sum.


If we were allowed to take a small mortgage like we originally had, there would be no problem. But we are told this is not possible as we have to clear the full mortgage first before another charge can be put on the property. Also, now because of our age, we won't be able to get a mortgage.


We took bad advice (paid money for advice from a reputable company) and now are paying the price.


Thank you for your comments.