Nationwide and Furlough

Monsterstereyebrows

My sister has to sell her house no choice( relationship breakdown) which she has a fixed rate mortgage on that is portable, however Nationwide has said that she cannot port it as she is on furlough. Therefore she still needs to sell but she will have to repay mortgage and will have to pay a £2000 early repayment fee. In view of this anyone got an idea if she has a case to challange the early repayment fee?

gary83

Looking at Nationwides FAQs they make it clear you have to apply to port your mortgage it’s not an automatic agreement ;

If you'd like to port your mortgage, we'll need to check your eligibility and affordability, and the property's suitability, in the same way as if you were applying for a new mortgage.

https://www.nationwide.co.uk/support/support-articles/manage-your-account/porting-your-mortgage/porting-your-mortgage-faqs#xtab:how-do-i-apply

That seems reasonable & easily viewable. they agreed to lend a certain amount, the previous house was assessed as being suitable as security & your sister & her partner was deemed as able to repay it, nearly all of those factors have changed. She also agreed to the fixed rate period & agreed to the Financial consequences of not sticking to that term. Bearing in mind the contract that she signed, what basis would she have to appeal?

Jeremy535897

Yes, it's one of these ludicrous situations like the ones that trap Northern Rock customers in their very high interest mortgages in negative equity situations:
"I would like to swap my mortgage that costs me £2,000 a month for one that costs £1,000 a month".
"Sorry Madam, according to our computer you can't afford the £1,000 mortgage, so you'll just have to keep paying the £2,000 one".