Nationwide - Early repayment fee

DanJ2018

Hi,

Hoping someone might be able to help or offer some advice !!!

We have recently moved home and got our mortgage through Nationwide. Our previous property was also mortgaged through Nationwide. We had a 2 yr fixed rate deal which would we be leaving early. We were buying a bigger property and needed to lend more.
We were aware that there was an early repayment charge ending the term of mortgage before the fixed term expired. We used the online service to process the mortgage and spoke to the call centre a few times to clarify details etc.
I called and spoke to Nationwide in reference to early repayment fee. I was told that because we were looking at moving to a new product borrowing more this wouldn!!!8217;t apply. Also as long as the sale and purchase complete on the same day it wouldn!!!8217;t apply.
Our solicitor was on the ball and also called them for her own confirmation that we would not be charged. Again she was told NO providing sale and purchase happen in the same day.
So 2 weeks after completion and in our new home I get a call from our solicitor. She has received a letter from Nationwide saying we owe just over £2000.00 redemption !!!
She had said that we!!!8217;d done our homework and she!!!8217;d checked and on a separate occasion both been told it would not apply. She advised I contact them.
Apparently because we!!!8217;ve gone from a 2 year fixed to 10 fixed we now owe the early repayment charge. This had not been mentioned that the term needed to be the same etc
So called Nationwide and got passed to 8 different people. Eventually I speak to a lady who has logged a complaint and told it would be dealt with in 3-5 days.
The letter from nationwide advises they still hold a charge on the property we sold! Solicitor said that hopefully our buyers solicitor has not yet tried to register in new owners names as that won!!!8217;t allow them due to nationwide charge.
If anyone has any advice it would be gravely appreciated. Thanks

middleclassbutpoor

I would imagine that whilst you and your solicitor have asked the question, there has clearly been some mis-communication. This could be through either how the question has been asked or how the question asked has been understood or you have both just spoken to the wrong people.

Unfortunately from time to time people do make honest mistakes and you are now relying on the goodwill of Nationwide to say they are prepared to do. Legally the T&Cs of your original mortgage will be what needs to be adhered to. If Nationwide can listen to the call and see that it is their fault, you may get some goodwill but there is nothing that will require them to waive it. Until then you owe the money and have not cleared the charge on your property.

Not sure if you took advice for the mortgage (either with a Nationwide adviser or another one) but if you have had advice then I would be asking them what to do. If you didn't take advice then you may have less comeback.

Thrugelmir

No redemption fee would apply if you ported the original product to the new property and took out a another loan to top up to the amount required. Whereas you appear to have redeemed your existing account for a totally new one. Somewhere along the line there appears to have been a misunderstanding.

DanJ2018

Thank you. I find the whole mortgage process Mind boggling and we spoke to nationwide for advice and continued the process online.

DanJ2018

Not really understanding that a higher mortgage with the same lender requires new set up etc. Wasn’t advised anything about porting the mortgage and not entirely sure this would’ve got us out the early repayment fee. The terms and conditions are below copied from nationwide

You will not be charged an ERC you’re taking all your existing Nationwide mortgage with you to a new property, and completing the sale of your existing property and the purchase of your new property on the same day (porting your mortgage)
you have the option to ‘switch and fix’ on your current mortgage and are switching to a new Nationwide fixed rate product

Do we not fall into that condition? At what point would we or should we have known porting was an option? Surely that’s what the terms and condition are of completing sale and purchase on the same day?
We called and spoke to an advisor with with mortgage application reference etc when we queried the ERC and were told it didn’t apply as we are taking new product?

middleclassbutpoor

Possibly could be that they have specific products for the switch and fix promise.

I would be equally frustrated in your position given you and your solicitor have tried to confirm what you are doing was the right thing.

When you got your Key Features Illustration for your new mortgage, does it say that nationwide have provided you with advice?

DanJ2018

It says we have not recommended a particular mortgage for you. You must make your own choice whether to accept this mortgage offer.
There is a section as to what fees you must pay.
In there it says the fee for the surveys we had done and no other figures. There is a section in this part which says other fees NONE
Surely that’s were the charge should’ve been put?
We haven’t received a closing statement etc for the original mortgage so I would’ve thought it could of appeared on that? But not sure we would get one.

Thrugelmir

Suggest that you visit a branch in person to resolve this. As you accepted the mortgage offer without receiving advice as to it's suitability.

middleclassbutpoor

Those fees are the fees for the new mortgage, it wouldnt include fees from the product you were redeeming.

It looks like you have not had advice therefore you are not able to make a complaint from that angle so you are back to seeing if you get a gesture of goodwill on the back of your complaint.