Nationwide refuses to extend mortgage

MEM62

achilles1 wrote: »

It is not unreasonable to ask for more time in order to be in a position to repay the mortgage, right?

It is not unreasonable to ask. You have asked and they have said no, which is also not unreasonable. It is probably more unreasonable to suggest taking them to financial ombudsman for not agreeing to your request.

Your mortgage has a contractual end date. You have reached it. You need to repay the capital or make other borrowing arrangements.

silvercar

If you intend saving over the next 4 years, it won’t be that dissimilar to a repayment mortgage. Both will result in you having paid the capital back in 4 years time. A repayment mortgage just makes your repayments more consistent, very little difference to you putting part of your income each month into savings and using that to clear the mortgage.

Thrugelmir

achilles1 wrote: »

If I take it to the Ombudsman, do I stand a change of winning?

None at all. The contract legally binds both parties to the terms and conditions. Onus is on you to settle the debt at the end of the mortgage term. The NW have offered you an option to extend the mortgage term. Take it or leave it.

ACG

Someone described this sort of thing quite well on here...

You are looking at your scenario from bottom up. You are bottom of the chain and all you can see is your situation.

The lender on the other hand looks from it top down. They set their rules for everyone, not on an individual basis as it would cost a fortune.

Financial Services has to follow some rules called Treating Customers Fairly (TCF), that does not mean saying yes to everything but it does mean treating everyone equally. So by saying to you, you can extend your interest only mortgage, they could be seen as giving you preferential treatment.

You have a few options:
1) Find a new lender.
2) Go part and part.
3) Negotiate.

I do not know the figures, but lets assume the current balance is £200k and you have £150k in savings, you could potentially pay off the £150k and agree to keep your payments as they are in order to bring the balance down? They are more likely to push it on a balance of £200k than they are on a balance of £50k.

You are saying they are making a big fuss, but you are the one not agreeing to the agreed terms. If they bumped the rate up mid way through the term, you would be kicking up a fuss - why? Because they are changing the terms.

mjm3346

achilles1 wrote: »

My plan is to save enough money and then repay the mortgage, I just need a bit more time. It is not unreasonable to ask for more time in order to be in a position to repay the mortgage, right?

You have had the whole term of the mortgage to make arrangements for when the term is up so it is not unreasonable for the Nationwide to expect you to deal with it now.

Let_Us_See

Look in the mirror and you will see the real problem facing you.

Kentish_Dave

I never really understand people getting upset or looking to escalate a dispute when a company is sticking 100% to the deal that was agreed.

OP, your story makes little sense at the moment, if you will have enough spare each month to save up the outstanding amount in four years then what possible problem do you have with moving to a repayment mortgage?

If you don’t have enough each month but instead have a vague plan about getting the money somehow at some later date then how can you imagine that you’d be offered an interest-only Liam?

ACG

Kentish_Dave wrote: »

I never really understand people getting upset or looking to escalate a dispute when a company is sticking 100% to the deal that was agreed.

OP, your story makes little sense at the moment, if you will have enough spare each month to save up the outstanding amount in four years then what possible problem do you have with moving to a repayment mortgage?

If you don’t have enough each month but instead have a vague plan about getting the money somehow at some later date then how can you imagine that you’d be offered an interest-only Liam?

My guess is they are earning more in savings than it is costing them in a mortgage. If the rate was higher on the mortgage, I am sure it would have been paid off.