Joolie
Options
Jcraigie
Posts: 2 Newbie
Hello Martin and moneysavers,
I have just had a mortgage quote for a fixed 4.49% with the Nationwide. Because I payed a non refundable reservation fee of £389, they guaranteed me with this rate.
On visiting the Nationwide website a couple of days later, I discovered that they have dropped the rate to 4.39%.
I called them and asked if I could have the lower rate, they told me that I would lose my fee and have to reapply with a further reservation fee. They said that was the rate guaranteed at the time.
I spoke to a representative and suggested that as I was a new customer that would it not be better to keep my custom, for at least two years, than if I went with another BS. I was told that this was Nationwides policy and they wouldn`t budge.
Please scroll down and see copy and pasted wording, as from Nationwide website the wording seems a little ambigous to me would you not agree?
I would be interested to hear you comments.
Reservation Fee
Fixed and tracker mortgages are available with or without a £389 reservation fee. If you choose the option with a non-refundable reservation fee, this allows us to guarantee a lower rate. Alternatively, if you choose the no reservation fee option you will pay a higher rate of interest over the deal period.
I have just had a mortgage quote for a fixed 4.49% with the Nationwide. Because I payed a non refundable reservation fee of £389, they guaranteed me with this rate.
On visiting the Nationwide website a couple of days later, I discovered that they have dropped the rate to 4.39%.
I called them and asked if I could have the lower rate, they told me that I would lose my fee and have to reapply with a further reservation fee. They said that was the rate guaranteed at the time.
I spoke to a representative and suggested that as I was a new customer that would it not be better to keep my custom, for at least two years, than if I went with another BS. I was told that this was Nationwides policy and they wouldn`t budge.
Please scroll down and see copy and pasted wording, as from Nationwide website the wording seems a little ambigous to me would you not agree?
I would be interested to hear you comments.
Reservation Fee
Fixed and tracker mortgages are available with or without a £389 reservation fee. If you choose the option with a non-refundable reservation fee, this allows us to guarantee a lower rate. Alternatively, if you choose the no reservation fee option you will pay a higher rate of interest over the deal period.
0
Comments
-
I think you've been a victim of bad timing.
In six months' time their rate could be back up to 5.5% - are you going to insist they put you on this higher rate?
I don't think so.
You've got an extremely competitive rate. If you don't like it, then you have to do your sums - work out whether it's worth sacrificing your arrangement fee and then either poo or get off the pot.
Sorry.0 -
The extra .1% over two years probably won't amount to the two booking fees, so stick with the rate you've got there. Bad luck, I'm afraid.
The definition is saying that if the rates went back up, you'd be guaranteed the rate you asked for at the start.Scott0 -
I also think you're also misreading their T&C's which you quoted. Without a fee they offer a fixed rate, with a fee they offer a lower fixed rate because you're paying a fee up front - you accepted the latter and fixed your rate at 4.49.Fixed and tracker mortgages are available with or without a £389 reservation fee. If you choose the option with a non-refundable reservation fee, this allows us to guarantee a lower rate. Alternatively, if you choose the no reservation fee option you will pay a higher rate of interest over the deal period.
Fixed rates do what they say on the tin - if rates go lower, your's doesn't - more importantly it's fixed if rates go higher. The benefit is certainty for the fixed period.
If you'd gone on the website a few days later and found the rate had increased would you have expected Nationwide to honour their previous agreement with you? Of course you would - that's all they're expecting of you.
Timing is unfortunate but it is still a very good rate.0 -
New to this and have been out of the mortgage search game for 8 years. Thanks for your constructive comments.0
This discussion has been closed.
Categories
- All Categories
- 343.3K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 248K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards