Forced to pay overpayment fee when payment requested

nick1977

Hi all

Recently separated from my wife, and have just bought her out of her share in our property and therefore had the deeds and mortgage transferred into my name.
Nationwide requested that (despite me saying I can afford it, which I know has no bearing), they wanted me to pay off £4,000 of the mortgage in order for it to be accepted solely in my name.
I didn't have a problem with this, but was rather annoyed to find that they have stung me with a 3% overpayment fee (which applies over £500). They said that it was unavoidable and the only way of paying off the required amount.
I feel a bit hard done by given that they requested the overpayment. What does everyone else think?

Nick

pollyanna24

Gosh, think it's a toughie. Blooming unfair, but if that's their rules and all that.

If it was me, I probably would fight it a bit harder. Do you mean 3% of the entire mortgage by the way cos I would imagine that's quite a lot?

maninthestreet

Don't pay - it's Nationwide that wants you to pay them the £4,000, not you requesting to pay them £4,000.

MortgagesInc

Very difficult, as you are switching the mortgage in to your sole name so they will only lend based on your own income - ie £4k less than your current mortgage. It is then your choice whether to go with that figure or move the mortgage to another lender, and have to pay the early redemption charge on the whole loan.

I agree it's not entirely fair, but you are asking to switch the mortgage to your own name, they're not forcing you to do it.

Sorry!

Dithering_Dad

If they have already switched the mortgage to your name and your wife has been safely removed from any claim to the house, then could you not just make a £500 overpayment and ignore them. I can't imagine them taking you to court over £3500, especially if you continue to pay your mortgage on time.

They may waive the fee in order to save themselves the hassle, and then you can overpay the full 4k, fee free.

MortgagesInc

From the OP Dithering I think he's already paid it, and the 3% charge has already been made

dunstonh

Technically, they are right. It's a tough one but they are correct in what they are doing. You agreed a contract with certain terms and now that contract is being broken.

It could have been worse. The mortgage may not have been accepted requiring a remortgage to another lender and the early repayment charges would have been far higher.

Dithering_Dad

MortgagesInc wrote: »

From the OP Dithering I think he's already paid it, and the 3% charge has already been made

Oh yes, sorry. I really will have to learn the difference between the words "They Have" and "They Will" :rotfl:

nick1977

Thanks all for your input. As has been stated above, I have already paid the 3% fee (approx £120) as I wanted this completed ASAP without any complications, as my ex-wife was being agreeable to taking into account that I had paid the initial deposit on the porperty.
Now that it has all been sorted, and the house is in my name, I think I shall write to the Nationwide and ask them to reconsider the fee, in the hope that they at least offer to reduce it by 50%. Long shot, but what have I got to lose other than a 2nd clas stamp and 10 minutes of my time?!

Thanks again
Nick