Nationwide mortgage - existing customers get worse deal than new customers.

KTF

Nationwide changed this policy a while ago. At the end of the day if they cant offer anything competitive to stay then there are plenty of others that will.

I went from Halifax to Nationwide and back to Halifax again. When my current deal is up, I will probably switch back if they are still offering good deals.

[Deleted User]

In the current credit crunch climate, I decided to try and negotiate a new 2 year tracker deal with Nationwide well before my current Nationwide tracker deal comes to an end. I got nowhere with Nationwide Direct but went direct to a branch and had no problems sorting out a deal to start as soon as my old deal finishes early next year. If you're on a Nationwide tracker deal that finishes in the next 6 months then it may be worthwhile asking them to sort out a new deal now if you think that the margin that they charge above base rate is going to get higher in the very near future.
Regards,
C.R.

acer99

I read this with interest as I am in a similar position to _NickB_. As a remortgaging Nationwide customer I could have the 2 yr tracker at 6.23% (no fee). However if I was a Nationwide customer who was moving house I could take their rate of 6.08% (no fee). I find this hard to take. I have been with Nationwide for over 6 years. Has anybody had any success at getting Nationwide to offer the same deal to existing customers? Very grateful for any information... Thanks.

garooba

Hello

I am with Nationwide and I have a 5 year fixed rate mortgage that finishes next year and am a bit lost at what to do. I do not really want to pay a redemption fee as it is a lot of money and find out where I can get a good deal for a mortgage please.

If anybody who knows more about mortgages then any advice will be most grateful.

Only serious people please answer.

Regards


Caroline

_NickB_ wrote: »

Hi all

Nationwide are offering better mortgage deals to new customers than to existing loyal customers.

They used to run an advertising campaign making a big deal of how they always gave existing customers the same deal as new customers, instead of making them subsidise new business.

I am an existing customer and I went to renew my about-to-expire mortgage deal with them today. I took base rate minus 0.07% for two years (£499 fee) but they refused to give me the better deal they advertise for new customers - base rate minus 0.27% (£599 fee).

I plan to take this further with Nationwide to try and get the better deal. Does anyone have any experience of having done this with Nationwide already?

Thanks
NickB

Dan_Collins_2

garooba wrote: »

Hello

I am with Nationwide and I have a 5 year fixed rate mortgage that finishes next year and am a bit lost at what to do. I do not really want to pay a redemption fee as it is a lot of money and find out where I can get a good deal for a mortgage please.

If anybody who knows more about mortgages then any advice will be most grateful.

Only serious people please answer.

Regards


Caroline

Well firstly dont worry about it until you have 3 months to go before your deal ends. Then go to your lender and see what they say. I imagine that if you want a fixed rate they will offer you something that would make it worth you staying. Nationwide are a very fair lender. They dont have better deals for new clients, normally the other way around. They do have different deals for purchase and remortgage at times though.

luckyfool

I'm not sure what the problem here is. Nationwide are pricing remortgage and purchase deals differently, as the profitability profile of these clients is different. A purchase mortgage client is substantially more likely to end up paying the SVR for at least a few months at the end of the tie in, relative to a purchase client. The reasons being obvious that a remortgage client has already shown an inclination to chop and change to get the best deal and are less likely to stay on the svr. Another factor is that on a remortgage the lender picks up survey fees and pays for legal work, whereas on a purchase they charge for the survey (which included a healthy profit margin) and leave the client to pick up legal costs. Because of this they can offer a better rate on a purchase deal. If this is a concern take a longer term deal at the outset, a term tracker, or remortgage to another lender if something better is available. I dont really see this as breaching Nationwide's commitment to treat existing clients the same as new ones.

I used to get alot of grief from my Nationwide bdm complaining that myself and my colleagues used them all the time for relatively low value remortgage business, but very rarely for purchases. At the time I explained that as they priced their remortgage rates at the same level as their purchases (whereas other lenders tended to charge slightly more for remortgages) they were often the best option by a significant margin for a remortgage for some clients, whereas for purchase business other lenders were similar or better as these other lenders were pricing their purchase products more keenly to attract certain types of clients. It is presumably partly this concern that led Nationwide to make this change. Otherwise they were getting an artificially high level of remortgage business, and low level of purchase business, neither of which is good for the building society or members in the long term.

ANDY597

hello all.

I had a 2 year tracker at 6.03% and noticed that nationwide had an attractive 5.63 - 5 year fixed on offer for a fee of £499. I was only 6 months through this particular deal, however I have been a long term nationwide customer.

I called the branch and they agreed to waive the fee and allowed me to transfer to the fixed rate without any penalty.

Im £20 better off every month.

I hope this helps the thread,

luckyfool

ANDY597 wrote: »

hello all.

I had a 2 year tracker at 6.03% and noticed that nationwide had an attractive 5.63 - 5 year fixed on offer for a fee of £499.

I called the branch and they agreed to waive the fee and allowed me to transfer to the fixed rate without any penalty.

Im £20 better off every month.

I hope this helps the thread,

I'm not sure if you mean they waived the arrangement fee, which would be good, or the redemption penalty, which is standard policy with Nationwide. They allow their tracker customers with tie ins to switch to one of their fixed rates at any time without paying the penalty, just any arrangement fee on the new mortgage.

It is a great option to be able to fall back on if you would like a variable deal, but would like to be able to lock in a fixed rate in the future when the time is right.

ANDY597

luckyfool wrote: »

I'm not sure if you mean they waived the arrangement fee, which would be good, or the redemption penalty, .

They waved the £499 arrangement fee too.

the_geary

Posted by ANDY597

They waved the £499 arrangement fee too.

Nationwide are currently offering the 5 year fixed 5.63% deal with no fee as an 'exclusive switcher loyalty' product for existing Nationwide customers.
So they have offered you that product rather than actually waiving the fee.

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