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    NATIONWIDE TIEING ME IN TO MORTGAGE, PLEASE ADVISE

    hi guys

    i took out a 5 year fixed deal with nationwide in sept 07 at 5.68%, the mortgage advisor (independent, recommended by estate agent selling the house) stated we could cancel the mortgage at anytime in the 5 years but there would a charge, around 4k! now i can get a better deal saving me at least 3k by 2012 (same time as the 5 year fixed ending) even after paying nationwide for grand.

    after having called them 10mins ago, the customer rep stated they have removed this option 3 days ago for all customers on fixed deals and that a letter stating this is on its way, she couldnt give me a reason why and said wait until the letter arrives.

    i feel like they are trying tieing me down so they make maximum money. can i report them to the FSA or should i speak to the mortgage advisor first? i am extremely annoyed, as my monthly payments are £896 and if i could cancel and go elsewhere they would be £663, so you can clearly see where id be saving.

    any help would be appreciated, thanks

    B

    25 Comments

    wheres the better deal to ?

    Original Poster

    The one account is an offset not a repayment mortgage, be careful!!!

    Original Poster

    wendyak;4154739

    The one account is an offset not a repayment mortgage, be careful!!!




    yes i am aware of that, i have savings which will work well, shaving 9 years off the mortgage and saving 53k in interest

    thanks for the lookout

    Banned

    can they just do this, didnt think they could just change the terms of the agreement, whats good for the goose is good for the gander, maybe you should also change your terms - lol

    Original Poster

    sassie;4154838

    can they just do this, didnt think they could just change the terms of … can they just do this, didnt think they could just change the terms of the agreement, whats good for the goose is good for the gander, maybe you should also change your terms - lol



    i didnt think that they could either. ill be on the phone tomorrow to the mortgage advisor and see what she has to say about this, as she as far as i am concerned clearly stated to us that the mortgage can be cancelled as long as you pay the fee.

    Banned

    burhaan77;4154871

    i didnt think that they could either. ill be on the phone tomorrow to the … i didnt think that they could either. ill be on the phone tomorrow to the mortgage advisor and see what she has to say about this, as she as far as i am concerned clearly stated to us that the mortgage can be cancelled as long as you pay the fee.



    yes, go kick some butts, dont let them get away with this, when i re-mortgage i want to go for an offset, but a repayment one

    Supermod

    You can pay your mortgage off at any time you like. Wait until their letter arrives and see what it says.

    I have to say, I've never heard of any mortgage company telling you that you can't leave them no matter what. And during my whole time working at a mortgage company, every problem account I dealt with always boiled down to what was on the offer that the customer had signed. Just as a customer can't go changing the offer that they agreed to, that also applies to the lender because the customers interests also have to be looked after.

    If they still advise you tomorrow that you can't get out of your mortgage with them, no matter what, ask to be put through to a manager and demand that they tell you the reason why because you are going to go directly to the banking ombudsman and you're not prepared to wait for a letter to come through, as you have a right to know now so you can give the ombudman the relevant information.

    Original Poster

    magicjay1986;4154954

    You can pay your mortgage off at any time you like. Wait until their … You can pay your mortgage off at any time you like. Wait until their letter arrives and see what it says.



    im not wanting to repay it, im looking to cancel it.

    thanks

    Original Poster

    Charlie&Lola;4154983

    I have to say, I've never heard of any mortgage company telling you that … I have to say, I've never heard of any mortgage company telling you that you can't leave them no matter what. And during my whole time working at a mortgage company, every problem account I dealt with always boiled down to what was on the offer that the customer had signed. Just as a customer can't go changing the offer that they agreed to, that also applies to the lender because the customers interests also have to be looked after. If they still advise you tomorrow that you can't get out of your mortgage with them, no matter what, ask to be put through to a manager and demand that they tell you the reason why because you are going to go directly to the banking ombudsman and you're not prepared to wait for a letter to come through, as you have a right to know now so you can give the ombudman the relevant information.



    thanks for that, im still in shock, so i will not be letting this rest. i will wait until their letter arrives to see their reasoning, in the meantime ill try to get something off the mortgage advisor in writing but ill play stupid not telling her what nationwide are doing and see what she says.

    burhaan77;4155026

    thanks for that, im still in shock, so i will not be letting this rest. i … thanks for that, im still in shock, so i will not be letting this rest. i will wait until their letter arrives to see their reasoning, in the meantime ill try to get something off the mortgage advisor in writing but ill play stupid not telling her what nationwide are doing and see what she says.



    If the mortgage advisor doesn't actually work for Nationwide, then having something in writing from them wouldn't hold any weight with Nationwide at all. You could go down the route of claiming against the advisor for giving you bad advice, but you'd still have to deal with Nationwide seperately as the advisor isn't an employee of theirs.

    I'm still hoping that this customer service person has got their knickers in a knot and given you incorrect information as I still cannot see how Nationwide can change an agreement as they want, signed by both you and them. The ombudsman would crucify them !!

    burhaan77;4155000

    im not wanting to repay it, im looking to cancel it.thanks


    By cancelling your mortgage with Nationwide and moving somewhere else you are repaying it with your next lender giving Nationwide the money.

    And in short, no they can't change the terms of the contract without you agreeing to it. It would be unlawful for them to say you can't pay them back early.

    Just checked with my wife who was a mortgage advisor and she says that no lender could legally do that, so whoever you've spoken to has got the wrong end of the stick.

    Original Poster

    suchafunkymonkey;4155250

    Just checked with my wife who was a mortgage advisor and she says that no … Just checked with my wife who was a mortgage advisor and she says that no lender could legally do that, so whoever you've spoken to has got the wrong end of the stick.



    thanks

    the customer service rep put me on hold to confirm this with her manager and came back with the same statement. they are now closed but i will call them back tomorrow

    thanks again

    suchafunkymonkey is right - research the equity of redemption. They can charge a fee but they can't simply lock you except for the first 6 months or so. Interesting article on this in the Cambridge Law Journal 2007 66:03 if you have access to an academic database.

    Original Poster

    seancampbell;4155704

    suchafunkymonkey is right - research the equity of redemption. They can … suchafunkymonkey is right - research the equity of redemption. They can charge a fee but they can't simply lock you except for the first 6 months or so. Interesting article on this in the Cambridge Law Journal 2007 66:03 if you have access to an academic database.



    thanks for that mate, ive got all the paper work out and slowly reading through it now. thanks again

    The equity of redemption should give some material - it's not just the right to redeem though but is broader. As far as redemption goes you have 4 specific rights
    The right to redeem on reasonable terms
    The right to be free of terms that prevent or postpone redemption
    The right to be free of oppressive or unconscionable terms
    The right to be free of collateral agreements favouring the mortgagee
    (Source Cheshire and Burn's Modern Law of Real Property 17 edition)

    Early repayment charge is capped at 12% under Cityland and Property v Dabrah 1986, and could be lower if you can demonstrate it is an 'extortionate credit bargain' under Consumer Credit Act 1974 as amended by CCA 2006. Further you can rely on the Unfair Terms in Consumer Contract Regulations 1994 to argue prevention of redemption is oppresive & or unconscionable.


    Note - this isn't legal advice, merely journalistic research and should not be relied upon - if in doubt seek legal advice.

    Supermod

    burhaan77;4155000

    im not wanting to repay it, im looking to cancel it.thanks



    I dont understand what you mean. You cannot just cancel a mortgage....

    magicjay1986;4156024

    I dont understand what you mean. You cannot just cancel a mortgage....




    I think he means "switch" his mortgage

    OP - I have mine with the Nationwide and have found them to be fine. If I were to switch or pay off all/part of my mortgage then I would have to pay 3% of the remaining balance plus fees. Job done. They can't not stop me doing so. I'd check your paperwork and speak to your advisor too.

    I would be very careful you know what you're doing before going to an offset mortgage, they are good if you have a chunky sum in the bank but not so if you don't have much

    Note also, paying less each month might be good now but it will take you longer to pay off the capital. Nationwide let me overpay which I'm doing and so it's taking years off my mortgage.

    Original Poster

    tallpete33;4159173

    I think he means "switch" his mortgage OP - I have mine with the … I think he means "switch" his mortgage OP - I have mine with the Nationwide and have found them to be fine. If I were to switch or pay off all/part of my mortgage then I would have to pay 3% of the remaining balance plus fees. Job done. They can't not stop me doing so. I'd check your paperwork and speak to your advisor too. I would be very careful you know what you're doing before going to an offset mortgage, they are good if you have a chunky sum in the bank but not so if you don't have muchNote also, paying less each month might be good now but it will take you longer to pay off the capital. Nationwide let me overpay which I'm doing and so it's taking years off my mortgage.




    hi mate

    yes i you're right, i am wanting to remortgage. That was the case for me, make an early repayment charge and i am free to remortgage with another provider.

    i do have a good sum of money to deposit into the account. Nationwide only allow me to pay up to £500 each month, which brings my repayments down by £3...which really is a drop in the ocean

    paying £663 to the one account is effectively the same as my current nationwide mortgage but i would be paying less interest.

    i am calling nationwide now, as the advisor is not answering her phone

    will keep you posted, thanks for all the comments and help

    Any update on this as I to am in a 5yr fixed deal paying 6.18% and thinking about my options. I see from their website that they have exempted people who need to pay an ERC from getting the loyalty deals as these are only available to those who are coming to the end of their current deals. Doesn't make it clear if that means we get treated as new customers and pay higher arrangement fees if we take another nationwide product. As present the fixed deals with them are now around the 4.1-4.8% (depending on fixed term period) with arrangement fees varying from nothing to £995 so that's around takes off approx £90 a month from my payments. Over remaining 4yrs left on fixed term that amounts to quite abit but going to get stung for £3k ERC + exit fee on £100k mortage left plus whatever arrangement fee there is for new mortage All in all I would have to be saving more than £4k over 4yrs to make the switch worth it?

    Njay;4301862

    Any update on this as I to am in a 5yr fixed deal paying 6.18% and … Any update on this as I to am in a 5yr fixed deal paying 6.18% and thinking about my options. I see from their website that they have exempted people who need to pay an ERC from getting the loyalty deals as these are only available to those who are coming to the end of their current deals. Doesn't make it clear if that means we get treated as new customers and pay higher arrangement fees if we take another nationwide product. As present the fixed deals with them are now around the 4.1-4.8% (depending on fixed term period) with arrangement fees varying from nothing to £995 so that's around takes off approx £90 a month from my payments. Over remaining 4yrs left on fixed term that amounts to quite abit but going to get stung for £3k ERC + exit fee on £100k mortage left plus whatever arrangement fee there is for new mortage All in all I would have to be saving more than £4k over 4yrs to make the switch worth it?




    I worked for another mortgage lender and what they would let customers do is pay the ERC from their current deal and switch over on to a new fixed rate, as long as they paid the relevant charges for the new product. In some cases, dependent on mortgage size compared to the value of the house, we would allow the customer to add the ERC to the outstanding mortgage balance.

    I'm not saying this is what you should do, as obviously you're going to be paying interest on any additional amount you add to your mortgage balance, but you need to decide whether it's worth paying the fees to go on to a new rate by working out exactly what you'd save by doing this. All our customers were charged fees to go on to new rates, new and old customers, as the fees helped to bring the rates on offer down.

    Ta for the info.

    Paying the ERC is ok as fortunately I have the money to do that. Its working out if once I've done that and pay exit and arrangement fees whether I would be better off?

    Njay;4304911

    Ta for the info.Paying the ERC is ok as fortunately I have the money to … Ta for the info.Paying the ERC is ok as fortunately I have the money to do that. Its working out if once I've done that and pay exit and arrangement fees whether I would be better off?



    If you're staying with Nationwide and just changing rate, then you won't have a mortgage exit fee to pay because you're not leaving the company. It would only be the ERC on your current rate, plus the arrangement fee for the new rate. You're not closing your mortgage down and opening up a new one with the new rate, you're simply varying the terms of your current mortgage, which is why you won't get charged any of the fees related to leaving your lender or closing your mortgage account down.

    Nationwide's website has a little tool you can play with where you put in the mortgage amount, and I presume the rates on offer will be there for you to choose, and it'll tell you what your new payments will be (remember to put in how long your mortgage has left to run now, not from 25 years again) and then take off the arrangement fee and ERC and what you're left with will give you a rough idea of what you'll be saving and whether it's worth doing.
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