Nationwide Mortgage

xporter

Hi there,
In view of the recent article about mortgage prisoner, I have a question.
I have a mortgage with Nationwide which was a initial big sum. To do the house up we got 2 additional loans. Now for the last several years I have been renewing the products every 2 years as a fixed product. I note all three products/loan/mortgages have different interest rates too.

I was thinking of switching provider with a hope to reduce my mortgage term and get a better rate. Nationwide however tells me that as I am on a 2 year fixed on all products (one expiring soon and the other expiring within 3 months after that) I do however have to pay early exit fee for the third product around £2k (as almost a year into that 2 year fixed product).

Despite a complain, they are not doing anything. I will be happy if even Nationwide combines all my loans into one and give me a better rate but they said they can't consolidate my loans.

I am unable to move one of the loan/product out, its either all or none (as it is linked to property deeds).

I would class myself stuck with them as the only option is for me to go on standard rate for a year to bring the third loan near these loans to think of moving out which I find is very unfair and very very long.

Wonder what are my right, I know I signed the T&C? I am getting better deals elsewhere so definitely worth moving out.

Many thanks

ChopperST

You need to provide more details. What are the loans, what’s the APRs / term length etc? What’s your income? Other unsecured debt?

[Deleted User]

Can't you move the expiring parts onto a tracker - not as cheap as going on a new fixed rate but certainly not near SVR expensive.

If you don't want to pay the ERC, have you spoken to a Nationwide mortgage advisor (rather than complaints) - they may be able to assist more in terms of a plan of action in bringing all the dates together. Even though you ultimately may want to leave them, if your stated goal is to (eventually) bring all parts in line, the advise given should reflect that.

Website existing customer quote shows the below, although products available may well be different depending on your LTV etc.

2 yr Tracker
Initial rate - 2.54%
(Base rate +1.79%)

Cashback
We'll give you cashback for choosing this mortgage.

No Early Repayment Charge
You'll pay no Early Repayment Charges (ERC), allowing unlimited overpayments and penalty free switching.

Low deposit
This mortgage is available for a low deposit: loans above 85% loan to value.

sal_III

Just go for a no ERC deal or even SVR on the main mortgage for 3 months until your other 2 deals end and aggregate them into a single product. It's most likely going to be cheaper than paying the 2k ERC

kingstreet

Reduce the term?

Why not just overpay to achieve the same result?

Nationwide allows overpayments of 10% of original loan a year.

You are unlikely to get better rates by changing lenders. Nationwide gives existing borrowers products as good as it gives new borrowers.

The separate sub-accounts is a minor inconvenience.

wantonnoodle

I would agree with Kingstreet. We're in the middle of remortgaging - nothing complicated - 80% LTV - need a mortgage of 214k on a 270k house. Household income just over 60k before tax, no kids or major commitment, and for us, the Nationwide was by far the cheapest deal around at 2.14% and fee free (we've been with the West Brom for past 2 years).

Anecdotal evidence from our broker seems to indicate that a lot of people are finding it cheaper to stick with Nationwide at the moment too, so maybe just sticking where you are is the best course of action. Don't forget, its not all about the interest rate - you need to consider the fees too - these can make a seemingly cheap deal work out quite expensive.

getmore4less

The problem with separate sub accounts is the fee/no fee can go against you compared to a bigger loan.

another option to get the sync point closer is take a 3 year on the ones coming up soon and a 2 year on the one that has 1 year to go.

with the ability to switch early you can narrow the gaps

On the NW 1.59%(£999)/1.99%(£0) the break even is around £130k(depends on term/payment)
If two bits combined would go over then having sub accounts is costing money.