Switching to Halifax from Nationwide

dirtydingismagee

Hi, I've googled this query until I'm blue in the face and got nothing..... Please forgive rambling, I'm new :-) We have opened Halifax Reward account after 8+ years with Nationwide (think we're FlexDirect...) with promise of £125 plus £5 a month (min £750 in, 2 DDs, stay in credit). All well and good. Then it occurred to me that we have a 'Flexclusive ISA' (preferential rate of 1.6% for having current account) and according to Nationwide adviser by phone, this rate could drop (she wasn't really sure) because we would no longer fulfill criteria (having to close N'wide account as part of switch). Fair enough, we might find another account elsewhere to switch to. What Nationwide couldn't tell me either, was what would happen in regards to the N'wide personal loan taken out last year (3.6% APR, again as a special deal to current account holders). She suggested they might put the rate up if we are no longer current account customers, or might even ask for the £7k back..... Documentation states this: The APR is calculated using the following assumptions: the loan is drawn down immediately in full for the full Term at the Interest Rate, the Agreement remains valid throughout the Term and each of the parties fulfil their obligations under the Agreement by the dates stated. I cannot see anywhere in the Agreement reference to having to remain current account customers for term. Has anyone any ideas/experience of this, with Nationwide or otherwise? Not going to bother with the switch if it's going to cost more over remaining 36 months of loan. Thanks in advance :-)

grumbler

You don't need any experience if you have the agreement.
If it doesn't say that you have to keep the account for duration of the loan and/or that they can increase the rate or demand the repayment otherwise, then the 'adviser's' suggestions were absolutely groundless. Hardly a surprise knowing the professional leverl of 'advisers' in banks/BSs.
To be fair, it's good that this was presented as a suggestion, not as a fact.

colsten

Simple: open another Nationwide FlexDirect account, in the name of the person that holds the FlexClusive ISA (it's impossible that "we" hold an ISA). Switch your old FlexDirect as planned.

dirtydingismagee

Totally agree with that, grumbler - nowhere does it state that we have to remain FlexDirect account holders for term.... So essentially you can open a current account, get a pretty good loan rate (at the time, I see it's lower now...) and then clear off again to another bank. Thanks!

dirtydingismagee

Colsten...... can't even remember if it's me or OH's name on the ISA! I did suggest to the lovely unhelpful Nationwide lady that I could do precisely that, but just got an 'ummm' back - Have just now phoned loans dept directly and told we can switch if we like, no penalties, just to make sure DD remains in place to pay it

colsten

It will be easy enough to find out whose name the ISA is in.

dirtydingismagee

colsten wrote: »

It will be easy enough to find out whose name the ISA is in.

Fingers and toes crossed it's mine!!

grumbler

The easiest way is online banking. Only the owner can see it.