Nationwide Increase Rates

Spenc

HI,

I am porting my mortgage with Nationwide to a new property.  I need to borrow quite a bit more so rang them at the beginning of last week to get an appointment for the mortgage offer.  I already had the AIP.  They couldn't offer me a date until the 14th Aug which seemed an age but i know they are busy.  Since that point the mortgage rates have gone up by 65 basis points.  Is there anything I can do as I did my affordability based on the rates when I requested a mortgage?    I still have 4 years left of me current mortgage so paying to come out of it could be more expensive.

details here:  https://www.mortgagestrategy.co.uk/news/nationwide-raising-rates-by-up-to-65-basis-points/

Any help would be appreciated.

Ashley

mageliken

Sorry Ashley, not sure if there's anything you'll be able to do. Perhaps others more experienced can help. I was waiting for Habito (mortgage broker) to submit an application to Nationwide, and part way through put their rates up. Now I'm waiting for a submission to a slightly more expensive mortgage with Coventry BS. Good luck!

Thrugelmir

Until you make a formal application. You'll remain subject to the uncertainty, Mortgage funds are finite. Lenders are having to make large provisions against potential losses. These can only be recouped by repricing new products. 

Spenc

That's a shame as the delay in making a formal application was because of the lack of availability of appointments.  There is no real point in doing an AIP if the terms can change so much as to making them unaffordable.  The price really should be agreed at that point but i understand banks want to try squeeze us as much as they can.

[Deleted User]

Spenc said:

The price really should be agreed at that point but i understand banks want to try squeeze us as much as they can.

That theory depends entirely on a belief that rates only ever go up. 

History shows that's not the case.

haras_n0sirrah

A rate is a tranche of products with an end date. If it was booked at aip and then the person  didn't buy for 6 months the bank has to keep the pot of money open all that time.
You did have the choice not to delay and use a broker. I know you didn't know the rates would move however they are eeking up at the moment. If other people are reading and are in a similar position where they have a 3 week delay to get an appointment it may be worth contacting an independent broker (not the conveyor belt types like habito and l&c as they also appear very delayed)
I was contacted by someone here on sunday, spoke to them Monday, aip done mon eve and mortgage booked Tuesday lunchtime. 
Going direct to lender has delays but it is avoidable 

Spenc

Deleted_User said:

Spenc said:

The price really should be agreed at that point but i understand banks want to try squeeze us as much as they can.

That theory depends entirely on a belief that rates only ever go up. 

History shows that's not the case.

Not really - ultimately banks are a business and try and squeeze money out of you regardless of the rate direction.  When rates go down you are not left in a position where you cannot buy the property.  This has also happened with increasing deposit amounts between AIP and application.  

Spenc

haras_n0sirrah said:

A rate is a tranche of products with an end date. If it was booked at aip and then the person  didn't buy for 6 months the bank has to keep the pot of money open all that time.
You did have the choice not to delay and use a broker. I know you didn't know the rates would move however they are eeking up at the moment. If other people are reading and are in a similar position where they have a 3 week delay to get an appointment it may be worth contacting an independent broker (not the conveyor belt types like habito and l&c as they also appear very delayed)
I was contacted by someone here on sunday, spoke to them Monday, aip done mon eve and mortgage booked Tuesday lunchtime. 
Going direct to lender has delays but it is avoidable 

If the mortgage approval was done at AIP and the customer doesn't buy in 6 months the bank still has to hold that pot of money. 
Amazing you can get something turned around so quickly and that going direct can cause delays.

[Deleted User]

Spenc said:

Deleted_User said:

Spenc said:

The price really should be agreed at that point but i understand banks want to try squeeze us as much as they can.

That theory depends entirely on a belief that rates only ever go up. 

History shows that's not the case.

Not really - ultimately banks are a business and try and squeeze money out of you regardless of the rate direction.  When rates go down you are not left in a position where you cannot buy the property.  This has also happened with increasing deposit amounts between AIP and application.  

Not really what I was saying.

If banks were to squeeze as much as possible, they'd need to enforce the higher AIP rate, but they don't.

And of course an increased deposit squeezes less money out you.

Stenwold

Spenc said:

Deleted_User said:

Spenc said:

The price really should be agreed at that point but i understand banks want to try squeeze us as much as they can.

That theory depends entirely on a belief that rates only ever go up. 

History shows that's not the case.

Not really - ultimately banks are a business and try and squeeze money out of you regardless of the rate direction.  When rates go down you are not left in a position where you cannot buy the property.  This has also happened with increasing deposit amounts between AIP and application.  

Nothing is secured until the bank/building society has received a signed mortgage application. This can be of benefit to the customer, but unfortunately not in your case.

Although it's a pain, I'm assuming you can still afford the further lending on the higher rate? If not then maybe take this as a blessing in disguise - an increase of 0.65% shouldn't be the difference between affordable or not, especially in the current climate.

Thrugelmir

Spenc said:

Deleted_User said:

Spenc said:

The price really should be agreed at that point but i understand banks want to try squeeze us as much as they can.

That theory depends entirely on a belief that rates only ever go up. 

History shows that's not the case.

Not really - ultimately banks are a business and try and squeeze money out of you regardless of the rate direction.  When rates go down you are not left in a position where you cannot buy the property.  This has also happened with increasing deposit amounts between AIP and application.  

Money is priced on two counts risk and the cost of funding to the lender. UK mortgage market is highly competitive.