Problems with Nationwide; advise?

Darren94

Hi all, I'll try get to the point over whats occurred and would welcome any advise if there is anything we can do or it's our fault and nothing can be done, thanks.

I own my property with my friend, we had a two years fixed deal with nationwide. we wanted to move when the two years fixed deal was up but no one has made a serious offer on our property.

our two year deal had ended and our mortgage went to the default rate from 1.something% to 4.something% and jumped nearly £300.00 so we needed to sort out a new deal in the mean time.

I popped into a mortgage broker on the high street (because nationwide adviser who contacted us via email was terrible at communicating to get a new deal done) he compared the market and suggested if we get to under 75% LTV ratio we could get a new two year tracker with nationwide which would be ideal as there's no set up fees or exit fees if the house does sell soon and we get to move. His system wasn't showing our LTV ratio for some reason but we know we would be very close to 75%, I went away to contact nationwide about an over-payment to get to the desired LTV for the best mortgage deal possible.

I spoke with them on 8/11/19 and was told our details are:
Value: 218,918
LTV: 75.727%
Needs to be 164,000 left on mortgage, currently 164,780.
overpayment of £1,000 would be enough to achieve our goal.

Told we can simply make an overpayment on the app and in a few days it'll show and our broker can put through the product switch for us. we made the overpayment that day.

Broker still couldn't do the product switch we wanted.

Spoke to nationwide again, this time told the overpayment is being held as a 'emergancy fund' if we can't pay the mortgage one month? bit strange, wasn't told this the first time, but told us to fill out a form and they'll take it off the debt.

OK great we done that on 21/11/19 and was advised we need to switch ASAP within few days or we shall be billed at 4.something% again on the very high mortgage rate costing us a few extra hundred quid in interest.

Speak with the broker, HE STILL CAN'T DO THE SWITCH, I decide to log in to nationwide product switch myself to see what is going on! 22/11/19 I log in and find our loan-to-value is now even worse at 75.9%. I'm confused but tell our broker to switch to the best deal that is available today because we don't want to be stung by the very high rate for another month again.

so at this point we've overpaid £1,000 and still aren't on the deal we wanted to achieve. We complain to nationwide as we done the overpayment based on the figures they've given us for our desired deal.

They've today phoned my house mate/joint owner to conclude the matter and have said they are giving us £75.00 as a gesture of goodwill for not telling us we need to fill in a form originally but other than that it's not their fault because when ringing to request this form/ask what's going on I said that we already know how much we need to overpay by (because of the conversation we already had that month)

Apparently it seems they decreased our value in this same time (a few weeks?) and didn't feel the need to tell us despite making it clear what our reasoning to do so was. and we should of challenged the value at the time (we didn't even know it had changed until the day of needing to switch products)

It doesn't feel right/fair to me but I'd like to know what you all think and if there is anything that can be done...

Thank you

[Deleted User]

What do you want out of this?

You have agreed to take whatever deal you can go on so there isn't really a comeback now. You should have sat on the variable rate for the month until it was fixed and then requested the difference back as compensation.

Nationwide werent involved in the mortgage switch as that is an advised service through the broker. Sounds like you directed the broker to proceed regardless of any issues so I would expect you to have no comeback now.

£75 for incorrect information seems fine to me.

If anything the broker should have got the business manager for Nationwide involved to get the LTV updated properly or an escalation to find out what the issue was. That's why these people exist, to facilitate the smooth submission of business.