Nationwide Complaint about switching deal

marc-h_2

We had an appointment with Nationwide this week to look at switching our mortgage deal early and paying the ERC to do so. The advisor told us we had to pay the ERC and switch immediately as that was their rules when there was an ERC to pay. We couldn't reserve and wait to decide. In the end we decided to still proceed but then when they sent the documents over during the appointment it says in 2 places that the offer is valid until a date thats about 6 weeks from now. We queried this and the advisor said it was mistake in the documentation and had been brought up before. We pressed them on this as we obviously had an official offer document stating it was valid for 6 weeks. We are only about 3 months from the date we can reserve without an ERC so this could make a big difference to the decision.  They wouldn't budge though and said our only option was to raise a complaint but agreed it didn't make sense!

In the end we still agreed to the new deal but then also got them to raise the complaint. We didn't want to risk losing the rate but don't see how they can provide that document and then verbally claim it's not valid.

Anyone else had any issues like this or got any thoughts about if we have a case or not for our complaint? I guess the outcome we want is to end up in the same position as we would if we could make the decision again in 6 weeks.

ACG

Is the wording one of those things that could be ambiguous? 
I used to work for a bank and we issued paperwork that people read in a different way to how it was intended. Ultimately the bank never backed down on it but did eventually change the wording. As far as I am aware nobody ever took it to the ombudsman, but they could have. 

Thrugelmir

marc-h_2 said:

 I guess the outcome we want is to end up in the same position as we would if we could make the decision again in 6 weeks.

The lender wouldn't want to wish running it's business on such a model. As would continually be inundated with repeat switching requests. No one foresaw an era as we have now. Where the cost of money is in a constant state of flux. 

marc-h_2

Thanks for the replies. This was the wording in the Mortgage Illustration -

"The information below remains valid until 20 June 2022. After that date, it may change in line with market conditions"

Also earlier in the introduction section of the offer document it says -

"How long this offer will be valid for, and when would we withdraw it? -- This mortgage offer will expire on 20/06/2022. -- If you do not confirm that you wish to go ahead with the product switch before your offer expires, the product shown in the mortgage illustration may no longer be available"

I found a comment in the footer of the advisors email saying -

"Our mortgage products / policy can change or be withdrawn at any time. To ensure you get a particular rate we must accept your application and you must pay any applicable fee for the mortgage product"

However surely that can't overule the contents of the actual offer document. There is no reason for that date to be there at all if it's not applicable.

user1977

marc-h_2 said:

This was the wording in the Mortgage Illustration -

"The information below remains valid until 20 June 2022. After that date, it may change in line with market conditions"

Also earlier in the introduction section of the offer document it says -

"How long this offer will be valid for, and when would we withdraw it? -- This mortgage offer will expire on 20/06/2022. -- If you do not confirm that you wish to go ahead with the product switch before your offer expires, the product shown in the mortgage illustration may no longer be available"

I found a comment in the footer of the advisors email saying -

"Our mortgage products / policy can change or be withdrawn at any time. To ensure you get a particular rate we must accept your application and you must pay any applicable fee for the mortgage product"

However surely that can't overule the contents of the actual offer document.

It's not "overruling" it, the expiry date isn't a promise that they'll definitely still provide the mortgage on any date up to 20 June, they always reserve the right to withdraw mortgage offers early. It expires on the earlier of (a) 20 June and (b) any earlier date they decide to withdraw the offer.

marc-h_2

user1977 said:

marc-h_2 said:

This was the wording in the Mortgage Illustration -

"The information below remains valid until 20 June 2022. After that date, it may change in line with market conditions"

Also earlier in the introduction section of the offer document it says -

"How long this offer will be valid for, and when would we withdraw it? -- This mortgage offer will expire on 20/06/2022. -- If you do not confirm that you wish to go ahead with the product switch before your offer expires, the product shown in the mortgage illustration may no longer be available"

I found a comment in the footer of the advisors email saying -

"Our mortgage products / policy can change or be withdrawn at any time. To ensure you get a particular rate we must accept your application and you must pay any applicable fee for the mortgage product"

However surely that can't overule the contents of the actual offer document.

It's not "overruling" it, the expiry date isn't a promise that they'll definitely still provide the mortgage on any date up to 20 June, they always reserve the right to withdraw mortgage offers early. It expires on the earlier of (a) 20 June and (b) any earlier date they decide to withdraw the offer.

That makes sense. It seems misleading to even include a date though when the advisors are saying even if we wanted to switch the following day we would have to get a new offer at the current rate.

Thrugelmir

marc-h_2 said:

user1977 said:

marc-h_2 said:

This was the wording in the Mortgage Illustration -

"The information below remains valid until 20 June 2022. After that date, it may change in line with market conditions"

Also earlier in the introduction section of the offer document it says -

"How long this offer will be valid for, and when would we withdraw it? -- This mortgage offer will expire on 20/06/2022. -- If you do not confirm that you wish to go ahead with the product switch before your offer expires, the product shown in the mortgage illustration may no longer be available"

I found a comment in the footer of the advisors email saying -

"Our mortgage products / policy can change or be withdrawn at any time. To ensure you get a particular rate we must accept your application and you must pay any applicable fee for the mortgage product"

However surely that can't overule the contents of the actual offer document.

It's not "overruling" it, the expiry date isn't a promise that they'll definitely still provide the mortgage on any date up to 20 June, they always reserve the right to withdraw mortgage offers early. It expires on the earlier of (a) 20 June and (b) any earlier date they decide to withdraw the offer.

That makes sense. It seems misleading to even include a date though when the advisors are saying even if we wanted to switch the following day we would have to get a new offer at the current rate.

When products are released there's a limited tranche of funds available. Once fully allocated, the lender can either allocate a further tranche of funding or withdraw the product. Mortgage books are run at the macro level not the micro.