'Not Bovvered' Nationwide

virgo149

Just wanted to vent some frustration at the Nationwide.

I've just rang them to check on what rates they will offer us when our 2 year tracker deal comes to an end in July. The 'robot' on the phone listed all products, rates and fees. I asked if they were interested in matching a deal we're looking at with HSBC and basically he told me they have absoluely no power to bargain in any way shape or form and was not in the slightest bit bothered about us moving to another company.

Now although I'm not a great beliver in company loyalty these days - we all need to shop around - but it just shows how hard the recent credit crunch is hitting when a major building society just aren't interested in retaining well paid, good paying mortgage customers.

Their loss!

On the plus side for anyone with a variable with the Nationwide, they are dropping it by 0.25% from 1st May!

wymondham

not really their loss as they'll get their money back when you move elsewhere, which is what there are after!

Tiddler_2

It isn't anything new to be honest, lenders have very rarely looked to match a deal you've been offered elsewhere, so I wouldn't necessarily put it down to the credit crunch.

Though that may be a factor in that if you pay off your mortgage then can then lend that money out again, but at a higher profit margin for themselves.

Also just to clarify the 0.25% drop is what came about from the last BoE change at the beginning of the month, and is not an additional drop. Nationwide just don't change it until the 1st of the following month on their systems.

UK007BullDog

No loss to them at all.

But it might be a loss for you. have you made sure you will be better off moving to another lender including all the fees involved? No point moving if you have to fork out money and you owe more than before the move.

People always look at rates, but should also look at fees. Especially if the mortgage is small.

virgo149

Tiddler wrote: »

Also just to clarify the 0.25% drop is what came about from the last BoE change at the beginning of the month, and is not an additional drop. Nationwide just don't change it until the 1st of the following month on their systems.

Yes, that is what I meant. Just nice to finally see a financial institution actually lowering their rate along with the BoE.

In relation to fees etc, all is worked out - we would recoup in 10 months rather than going onto the SVR - we want flexibility which is what we will get with the new product - lifetime tracker at 0.48% above BoE BR - no tie ins, unlimited overpayments.

Thanks all for your comments!

Peelerfart

UK007BullDog wrote: »

No loss to them at all.

But surely it must be a loss as I have received similar shoddy treatment from the Cheshire BS and would never use them for anything ever again.Perhaps more importantly I would also tell anyone who listened never to use them either !.

Surely they are being very short sighted p155**g people off like this ?

beecher

Peelerfart wrote: »

But surely it must be a loss as I have received similar shoddy treatment from the Cheshire BS and would never use them for anything ever again.Perhaps more importantly I would also tell anyone who listened never to use them either !.

Surely they are being very short sighted p155**g people off like this ?

I'm not sure that it is 'shoddy' treatment for a bank not to match a rate given by another institutuion. My bank doesn't even match the rate given to new customers - that's just the way it it.

Woodgnome_2

I am the same boat Virgo as my deal is up 30th June with the Nationwide.

I think It is worth moving away from the Nationwide as I am in the process of doing now.

Awaiting a second meeting with HSBC to secure the 5.39% 5 year fixed deal.

UK007BullDog

Peelerfart wrote: »

But surely it must be a loss as I have received similar shoddy treatment from the Cheshire BS and would never use them for anything ever again.Perhaps more importantly I would also tell anyone who listened never to use them either !.

Surely they are being very short sighted p155**g people off like this ?

Banks/Lenders are being rated by consumer groups and watchdogs every year, and yet people still stick with them or join them. The hunt for the freebie, best rate clouds peoples judgement at times.

So it makes no impact if you tell people, they will still join them if something is very good to them or they can see something to be positive for them. I have been with my bank for 20 plus years and cannot be enticed to move as I get the service I need for free with a high overdraft when needed. If I had to pay for my account then I would be shopping about.

Also the lenders try to sell you the product first which gives them the highest return. So you have to shop around and also check what else they have.

I have been with Nationwide since I started my mortgage. I try to not pay any fee or very low fee as my mortgage is so small I am not too worried about the rate. Hopefully in 7 years I will be mortgage free knocking 8 years off the mortgage. They tried to give me the tracker with the highest fee. I took the fixed with no fee. I am better off overall even though the fixed rate is higher. Just have to do the maths.

payless

Think Virgo is also going HSBC... their ratematcher deals have had all the headlines but those 2 "standard" deals are also very competitive.

Of course if lenders all matched eachother would would likely end up with some sort of Cartel
--
The other lenders either can't afford to take on business at this price, or aren't willing to- either due to profit margins or concerns over service-

HSBC have either access to lower cost funds, or are willing to take a hit on margins ( possibly even a loss)

It gives them a market share... but will they keep it when deals come up for renewal .. those swapping now are likely to swap again if something better comes along.

It gives them a client base to cross sell... expect the heavy sell on life & Cri ill, which may not be the cheapest anyway

It might back fire if service affected, whether at application, processing or legal completion stage ( we keep getting posts of people saying swap was delayed ... want compo! - obviously not on these HSBC deal, but hope they have quality tested whoever is doing the legals)