Trapped and Exploited by Nationwide

Trapped1

Daughter can not increase her mortgage due to her salary - this would be a very good idea.

Trapped1

@Thrugelmir
“ 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.


Response:

This is very easy for you to say. You have not read the emails!

ACG

This is not nationwides fault. I can see why they are refusing to back down, they are not in the wrong and they are a business.

Your argument is with the advisor. It seems odd that they have agreed to compensation but not enough to put you back where you would have been had the advice not been given/taken.

I do not do equity release and 2004 was before my time as an advisor so my experience is limited but I would knock complaining to nationwide on the head and concentrate on how to move forward.

Having the cash in the bank inistead of the property...im not entirely sure how that would have got around IHT. There probably are a couple of ways to get this back on track, none of which are ideal under the circumstances but with family willing to help im sure there will be a way.

pjread

So what happened to the cash released, is that sat about and available to knock a chunk off the loan amount?

englisho

Sorry I dont understand..

You've been in the property 40 years and it's still mortgaged?

Trapped1

It may not be their fault but they are fully aware that we were mis-sold. But, from their written emails they are happy to see us kept in this mortgage because it benefits their members by £1000 per month.


At the end of the day, Nationwide have made a HUGE profit, way above normal interest rates and in the interests of customer relations, it would not hurt to come up with some options to help us.

Trapped1

Yes - we can pay off of the majority of the mortgage. But they won't give us any options for the remaining. If we were put back on the same interest only mortgage or even a repayment, we could easily pay it from our pension.


They want us trapped on the 6.75% because it benefits their Members. We asked if we could make a lump sum payment and they replied that we don't 'require' you to repay the mortgage and we can stay in our home until we die or go into a home.

Keep_pedalling

I would speculate that the cash raised was given away, to make it potentially exempt from IHT. Complaining about NW because your tax avoidance scheme has gone horrible wrong seems a bit rich really.

I can understand you wanting to keep you house in the family, but truth is that really happens and the for sale signs go up not that long after the funeral in most cases, so maybe it is time to bite the bullet and do a bit of downsizing, and shed the financial burden you carry with the existing house.

silvercar

Trapped1 wrote: »

Yes - we can pay off of the majority of the mortgage. But they won't give us any options for the remaining. If we were put back on the same interest only mortgage or even a repayment, we could easily pay it from our pension.


They want us trapped on the 6.75% because it benefits their Members. We asked if we could make a lump sum payment and they replied that we don't 'require' you to repay the mortgage and we can stay in our home until we die or go into a home.

Ok, but will they allow you to pay off the majority of the mortgage? If they will then this could make sense. As you won't be seeing a 6.75% return on the money if it is sitting in a low interest account.

Before you do this make sure that you won't need the money for anything else.

silvercar

The other option is to go to the other extreme. They don't require you to sell the property or repay the loan, so leave it. Accept that and spend the money you have, give some away to your daughter now, so she has money to spend now rather than waiting to inherit. Enjoy the money and forget about what happens to the property in the future.