Nationwide Interest Rates - The Timing Seems More Than A Co-incidence...

KevinUTO1867

Yesterday (23rd January), Nationwide announced interest rate reductions across their mortgage products, which is of course great news to people hunting for the best mortgage rates... well, maybe not all!

Co-incidentally, yesterday's announcement came the next working day after Nationwide's cut-off point for exiting products or switches signed up to that month. Usually, their cancellation date is the 20th of the month, but as that landed on a Saturday, it's the 22nd for this month. I find that rather convenient timing - anyone who had a mortgage product due to start 1st February could not cancel after the 22nd January, and shock horror, Nationwide announces rate cuts on the morning of the 23rd January (which take affect today - 24th)!

I don't believe this to be fair practice, the timing looks deliberate and manipulated, and I have reached out to Nationwide - via email in order to collect evidence should I need it in future - to raise a complaint. I'm awaiting a reply.

Has anyone else been impacted by this? Also, does anyone have any advice on sensible next steps whilst I wait for Nationwide to reply? Thanks in advance.

KatrinaS22

I am in this exact position, awful practice and a terrible way to treat their customers. I'd be very interested to hear their reply to you and also looking for advice on next steps. 

RelievedSheff

No matter when they change their rates there will always be someone unhappy about the timings!

KevinUTO1867

KatrinaS22 said:

I am in this exact position, awful practice and a terrible way to treat their customers. I'd be very interested to hear their reply to you and also looking for advice on next steps. 

Absolutely. I've had someone contact me to say they received the complaint and its marked as "complete". I'm about to ask what that even means! I'll keep this thread updated.

KevinUTO1867

RelievedSheff said:

No matter when they change their rates there will always be someone unhappy about the timings!

If the rates had changed 1st February - when our mortgage has started - I'd have no problem whatsoever. I'd be a bit gutted I just missed out, but that's life. However, changing rates hours after the monthly cut off for cancelling an agreement in principle is very, very different.

KevinUTO1867

KatrinaS22 said:

I am in this exact position, awful practice and a terrible way to treat their customers. I'd be very interested to hear their reply to you and also looking for advice on next steps. 

Apparently, despite their feedback form saying that if a response is required, someone will be in touch within 7 working days, that's not actually the case - it just gets treated as feedback and closed off whether a reply is necessary or not!

So, I'm awaiting a response regarding the formal complaints procedure - only option online is via phone, and I want everything in writing do take to the Financial Ombudsman if necessary further down the line. I'll post whatever I get from Nationwide here so you can start your own complaint if you wish.

KevinUTO1867

KatrinaS22 said:

I am in this exact position, awful practice and a terrible way to treat their customers. I'd be very interested to hear their reply to you and also looking for advice on next steps. 

I've managed to log a complaint via the Chat with Us feature on the Nationwide website. Sorry, I can't post a link but if you go to Nationwide's website, then Contact Us, Make a Complaint or Give Feedback, select I'd Like To Make a Complaint, and click How to Make a Complaint, all the information is there.

Alternatively, go to the Nationwide website, and add /contact-us/make-a-complaint-or-send-us-feedback/ on to the end of the URL!!

Will also post any further updates here in case it helps anyone else.

BoGoF

KevinUTO1867 said:

RelievedSheff said:

No matter when they change their rates there will always be someone unhappy about the timings!

If the rates had changed 1st February - when our mortgage has started - I'd have no problem whatsoever. I'd be a bit gutted I just missed out, but that's life. However, changing rates hours after the monthly cut off for cancelling an agreement in principle is very, very different.

In your opinion. I don't see any difference. Not sure the FOS will either and your complaint has no real merits. There are always winners and losers with these things.

KevinUTO1867

BoGoF said:

KevinUTO1867 said:

RelievedSheff said:

No matter when they change their rates there will always be someone unhappy about the timings!

If the rates had changed 1st February - when our mortgage has started - I'd have no problem whatsoever. I'd be a bit gutted I just missed out, but that's life. However, changing rates hours after the monthly cut off for cancelling an agreement in principle is very, very different.

In your opinion. I don't see any difference. Not sure the FOS will either and your complaint has no real merits. There are always winners and losers with these things.

1st February my mortgage has started. 23rd January it hasn't. Thanks for your opinion, I'll let Nationwide and if needs be, the Financial Ombudsman, decide if the complaint has merit though. 

ACG

https://www.nationwide-intermediary.co.uk/news - scroll down. 
It seems to just be a coincidence, the last 3 have been the 30th of the month, the 7th and the 23rd. Thats spread out throughout the month. I can only see the last 3 changes on their site. 

At the moment nationwide seem to want to be top of all of the tables, they are reacting to other lenders. Last week and the week before co-op and virgin money brought out pretty good rates. They are probably not able to just go and bring out a new rate a day or 2 later as it needs to go through various stages. Had those 2 not reduced their rates, I doubt nationwide would have lowered theirs. 

KevinUTO1867

ACG said:

************************************* - scroll down. 
It seems to just be a coincidence, the last 3 have been the 30th of the month, the 7th and the 23rd. Thats spread out throughout the month. I can only see the last 3 changes on their site. 

At the moment nationwide seem to want to be top of all of the tables, they are reacting to other lenders. Last week and the week before co-op and virgin money brought out pretty good rates. They are probably not able to just go and bring out a new rate a day or 2 later as it needs to go through various stages. Had those 2 not reduced their rates, I doubt nationwide would have lowered theirs. 

Thanks for this, much appreciated. So, 2 out of the last 3 changes have been during the non-cancellation period after the 20th (or nearest working day afterwards).

Yes, I had seen HSBC, Halifax, Yorkshire BS, and Coventry BS had all moved their rates towards the earlier part of the month - I've been tracking rates since October 2023 in order to plan for our switch at the start of February 2024. It's taken Nationwide a reasonable amount of time to react, and then when they have reacted, it's been 8 hours after their non-cancellation period closed. This will have locked thousands of people into a higher rate switch/new product by waiting a day to release their new rates - and probably worth millions of pounds to them.

The rate drop in December, which was the lowest off memory (0.15%), seemed to happen before the above providers dropped their rates. Maybe it's a co-incidence Nationwide moved slower when the drop was more significant. Who knows!

But, I firmly believe a rate change 8 hours after a non-cancellation period for a future mortgage has just clicked in is unethical and bad practice. I would hope the powers that be at Nationwide acknowledge the timing looks suspect and offer some goodwill. And if not, that the Financial Ombudsman will rule my way.

I'm fortunate that, due to rates falling, we only locked in for 2 years starting in February and the financial impact is minimal. It's a point of principle for me as the timing gives off an unpleasant odour.

Edit: had to remove the link as I couldn't reply with it in your post due to being a newbie!