Nationwide fiasco
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Hummhurst
Posts: 9 Forumite
Sorry this is very long, but we are at the end of our tether with this Building Society.
In April my husband and I went to see a mortgage advisor at our local branch as we wanted to borrow more money to fund an extension. As we have one year left of a fixed rate mortgage (£80k owing), the advisor recommended we have a further advance of £80k and leave the existing mortgage to run in tandem (so we don't pay a redemption penalty).
We had an added complication that the existing mortgage and house are in my name only. The advisor told us to instruct a Solicitor to arrange a Transfer of Equity, which we did.
We are now 11 weeks later and they are continuing to inform our Solicitor that it is a remortgage and he must treat it as such. Despite our producing our DIP stating it is two mortgages, we have seen several letters from them to our Solicitor saying that it is a remortgage. The first letter from them said 'our existing loan must be repaid and replaced with a new mortgage'.
They are totally useless - we've contacted the local Branch Manager (who confessed he knew nothing about mortgages and couldn't resolve it) to ringing the Complaint line who took the details, but still couldn't help. Apparently you have to lodge an official complaint - 4 more business days lost!!
Despite our Solicitors numerous attempts to resolve this, the only solution is to pay £700 Stamp Duty (Nationwide are insistent that the whole £160k is eligible for SDLT!!!!!!!) and hope it can be resolved through the Complaint Department.
Has anyone else had problems with Nationwide like us?
In April my husband and I went to see a mortgage advisor at our local branch as we wanted to borrow more money to fund an extension. As we have one year left of a fixed rate mortgage (£80k owing), the advisor recommended we have a further advance of £80k and leave the existing mortgage to run in tandem (so we don't pay a redemption penalty).
We had an added complication that the existing mortgage and house are in my name only. The advisor told us to instruct a Solicitor to arrange a Transfer of Equity, which we did.
We are now 11 weeks later and they are continuing to inform our Solicitor that it is a remortgage and he must treat it as such. Despite our producing our DIP stating it is two mortgages, we have seen several letters from them to our Solicitor saying that it is a remortgage. The first letter from them said 'our existing loan must be repaid and replaced with a new mortgage'.
They are totally useless - we've contacted the local Branch Manager (who confessed he knew nothing about mortgages and couldn't resolve it) to ringing the Complaint line who took the details, but still couldn't help. Apparently you have to lodge an official complaint - 4 more business days lost!!
Despite our Solicitors numerous attempts to resolve this, the only solution is to pay £700 Stamp Duty (Nationwide are insistent that the whole £160k is eligible for SDLT!!!!!!!) and hope it can be resolved through the Complaint Department.
Has anyone else had problems with Nationwide like us?
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Comments
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In effect it is a remortgage. Adding a new party to an existing loan requires lenders to perform the same checks as a new mortgage application. A DIP isn't a mortgage offer. Has no bearing on your current situation.0
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I can accept that, as they have finally agreed it's an internal remortgage (and will waive the early redemption charges!!). How can these exist if we haven't changed the terms of the mortgage, just added a name.
What I can't accept is that apart from initially telling us that all our Solicitor had to do was a transfer of equity, as they would complete all other conveyancing matters, why they've asked our Solicitor to do searches etc and lump both amounts together?
Sorry should have said that the mortgage offer was for two mortgages too.0 -
You are confusing 'the mortgage' with 'the loan'.
You currently have lending with Nationwide secured on the property via 'a mortgage'.
You are changing the terms of that mortgage by removing a party to it. Hence the 'remortgage' element.
The fact you are applying for another loan (further advance) from Nationwide, to be secured on the new mortgage, and how the terms of that loan are set up, is a separate issue from 'the mortgage'.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Ok I get that but why are they lumping them together for SDLT purposes? I've rung the Government helpline and even they say we are only liable for it against the first mortgage not the second loan/mortgage.0
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Ok I get that but why are they lumping them together for SDLT purposes? I've rung the Government helpline and even they say we are only liable for it against the first mortgage not the second loan/mortgage.
Why are you taking advice from the nationwide about SDLT rather than from your solicitor? It's not up to the lender how you calculate your SDLT liability, they only need to ensure that you're submitting a return.0 -
You are raising the £80,000 to buy your ex out are you not.
SDLT is intestered in:
The chargeable consideration
In most property transactions, you pay money in exchange for the property or land, or for an interest in land, but there are other ways of making payment. If you give something of value in exchange for land or property, it counts towards the chargeable consideration.
Non-monetary payment
As well as money, you can exchange property for:
goods
works or services
release from a debt
transfer of (taking on) a debtI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
As I read it OP is adding her husband to the existing mortgage (and borrowing further). The chargeable consideration for SDLT purposes would therefore be 50% of the total (50% * £160k = £80k).
This is below the normal SDLT limit so should not require any SDLT payment.
OP does your husband already have an interest in another property? That may confuse matters.0 -
Sorry to clarify matters
Current mortgage and house are in my name but we want to add husband to both and the new loan/mortgage.
No husband does not own any other property.
Solicitor keeps trying to explain to them that no SDLT is liable but Nationwide are insisting £160k is put on Transfer deed rather than just the existing debt (as per government helpline advise). As SDLT is payable above £150 therefore approx £700 is payable.
That is the basis of our frustration. Every time either Solicitor or ourselves try to contact them to clarify things we get different stories.0 -
If you are transferring him in the consideration is half the mortgage liability.
It appears Nationwide consider the mortgage the new full amount, it is a 'new mortgage' as there is a new co owner and mortgagee.
You are saying the current £80K lending is the mortgage and the extra £80K is a further advance which is not a consideration.
Sounds to me like that would be the case if you brought your husband onto the property with the current lending and then took the FA after.
Since you are trying to do everything at once it sounds like your husband is picking up liability for £160K whilst the equity is being transferred.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thank you so much for your replies. Everyone has given more informative reasons in a couple of hours than we've had in 11 weeks of being passed from person to person.
My problem is that we are not mortgage experts. All we've wanted is clarification so that this can be resolved and we have the money ready for the work to begin in the next couple of weeks. We didn't expect it to take over 3 months to sort out.
Sorry but I still don't understand why he is liable for 100% of £160k. Even the SDLT helpline disagreed - they said he's only liable for half of the original £80k.
We'll await their reply to our complaint. Hopefully they'll explain it as clearly as you have.
Thanks everyone0
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