Nationwide mortgages- are they idiots?
Discussion
Just interested in other people's experiences of Nationwide mortgages?
Until yesterday only mild incompetence (failing to send welcome pack despite being asked 3 times, branch managed to fail to fax all pages of documents over etc) but they've outdone themselves yesterday. House we're buying is no chain and loan to value is 52% so they're money is fairly safe but there are no completion certificates for two of the extensions. Rather than putting a retention on the mortgage (which they've refused) they have suggested an indemnity insurance (which the conveyancing solicitor says isn't legal) or doing the work between exchange and completion (which is completely impractical in the circumstances as well as a nightmare with contracts etc). We were planning on doing the work required preferably before moving in.
Unless the next level of advisor pulls a rabbit out of the hat we might have to even look at a different mortgage which is completely ridiculous and would require another survey etc.
Interested if anyone else has any advice if not I'd say that I would definitely not recommend them at least until they've sorted the numpties on their mortgage team!
Until yesterday only mild incompetence (failing to send welcome pack despite being asked 3 times, branch managed to fail to fax all pages of documents over etc) but they've outdone themselves yesterday. House we're buying is no chain and loan to value is 52% so they're money is fairly safe but there are no completion certificates for two of the extensions. Rather than putting a retention on the mortgage (which they've refused) they have suggested an indemnity insurance (which the conveyancing solicitor says isn't legal) or doing the work between exchange and completion (which is completely impractical in the circumstances as well as a nightmare with contracts etc). We were planning on doing the work required preferably before moving in.
Unless the next level of advisor pulls a rabbit out of the hat we might have to even look at a different mortgage which is completely ridiculous and would require another survey etc.
Interested if anyone else has any advice if not I'd say that I would definitely not recommend them at least until they've sorted the numpties on their mortgage team!
You can apply for retrospective BC approval - usually impossible without taking ceilings down for access.
The indemnity route is legal, but only if the work being insured is a few years old, plus all it covers you for is council action rather than it actually collapsing/exploding. Your solicitor sounds lacking.
If the lack of approval is hinting at something ready to collapse/explode, I can see nationwide's point of view - why they don't want to do a retention though I don't know. We had a 100% retention on one house until completion - but that was in a bad bad way, and it was 15 years BC ago (Bankers Confidence).
If Nationwide won't accept an insurance policy (which I'm convinced would be legal), won't retain money to cover it, and you can't get retrospective approval or do the works before completion I think you're screwed - but wait for a legal mind to answer
The indemnity route is legal, but only if the work being insured is a few years old, plus all it covers you for is council action rather than it actually collapsing/exploding. Your solicitor sounds lacking.
If the lack of approval is hinting at something ready to collapse/explode, I can see nationwide's point of view - why they don't want to do a retention though I don't know. We had a 100% retention on one house until completion - but that was in a bad bad way, and it was 15 years BC ago (Bankers Confidence).
If Nationwide won't accept an insurance policy (which I'm convinced would be legal), won't retain money to cover it, and you can't get retrospective approval or do the works before completion I think you're screwed - but wait for a legal mind to answer
The issue with the indemnity is that we intend to complete the work and other work and get building regulations approval for that. Approaching the council will invalidate the indemnity insurance according both to the solicitor (& my wife, who is also a solicitor). So indemnity policy is fine until you want to do the work. It is a bit beyond me tbh!
mclwanB said:
The issue with the indemnity is that we intend to complete the work and other work and get building regulations approval for that. Approaching the council will invalidate the indemnity insurance according both to the solicitor (& my wife, who is also a solicitor). So indemnity policy is fine until you want to do the work. It is a bit beyond me tbh!
That is the case afaik - if council know, you're stuffed as regards an indemnity I'm afraid.eta that's why there's a time limit - otherwise people would build something then save money on inspection fees by getting insurance to keep the council off their backs.
Can't help but can sympathise.
I had a house with Nationwide for 6yrs - I carried out work on it and it went up in value by £150k I wanted to change my Mortgage for a BTL and they insisted they'd need a new valuation (£250) despite them currently mortgaging it and that house prices had shot up.
Needless to say, I went elsewhere.
I had a house with Nationwide for 6yrs - I carried out work on it and it went up in value by £150k I wanted to change my Mortgage for a BTL and they insisted they'd need a new valuation (£250) despite them currently mortgaging it and that house prices had shot up.
Needless to say, I went elsewhere.
mclwanB said:
Work is replacement of 2 windows, door glass in front door and under floor insulation. Also loft conversion likely to need more insulation to get up to modern building regs.
Bizarrely the 7k of work required on the drains was missed!
Bizarrely the 7k of work required on the drains was missed!
Idiots. I was expecting underpinning, new roof, extension foundations dug round some willow trees, that sort of thing.
andy43 said:
mclwanB said:
Work is replacement of 2 windows, door glass in front door and under floor insulation. Also loft conversion likely to need more insulation to get up to modern building regs.
Bizarrely the 7k of work required on the drains was missed!
Bizarrely the 7k of work required on the drains was missed!
Idiots. I was expecting underpinning, new roof, extension foundations dug round some willow trees, that sort of thing.
Sharted said:
Most of the issues covered here relate to the survey.
Surveyor report shows issues and lender is obliged to react appropriately, as a lender they could be exposed to being seen as irresponsible.
Best to remove the emotion from the transaction.
No emotions involved in decision- would much rather they come to their senses and we can sort something out. Problem is that they are not reacting appropriately- 7k worth of non structural work is what they are requiring to be done between exchange and completion, on a loan to value of 52%. Given the difficulties in access we've had previously this a is real no go particularly given the legal complexities involved in drawing up a suitable contract.Surveyor report shows issues and lender is obliged to react appropriately, as a lender they could be exposed to being seen as irresponsible.
Best to remove the emotion from the transaction.
I think speaking to a broker and finding a less stupid mortgage company- one say that has been known to offer a retention on a mortgage in similar circumstances- is unfortunately going to be the answer.
They were awful with us when we moved earlier this year, it was along sorry saga quite of bit it is posted on their Facebook page. We put in a complaint and got a decent sum in compensation.
PS Our welcome box gift arrived about 6 weeks after we moved in - realise that this is a gift as such and it was not expected but to arrive 6 weeks late seemed to be the icing on the cake of their incompetence!
PS Our welcome box gift arrived about 6 weeks after we moved in - realise that this is a gift as such and it was not expected but to arrive 6 weeks late seemed to be the icing on the cake of their incompetence!
They were awful with us when we moved earlier this year, it was along sorry saga quite of bit it is posted on their Facebook page. We put in a complaint and got a decent sum in compensation.
PS Our welcome box gift arrived about 6 weeks after we moved in - realise that this is a gift as such and it was not expected but to arrive 6 weeks late seemed to be the icing on the cake of their incompetence!
PS Our welcome box gift arrived about 6 weeks after we moved in - realise that this is a gift as such and it was not expected but to arrive 6 weeks late seemed to be the icing on the cake of their incompetence!
Rabbington On said:
They were awful with us when we moved earlier this year, it was along sorry saga quite of bit it is posted on their Facebook page. We put in a complaint and got a decent sum in compensation.
PS Our welcome box gift arrived about 6 weeks after we moved in - realise that this is a gift as such and it was not expected but to arrive 6 weeks late seemed to be the icing on the cake of their incompetence!
Had a look at their Facebook page (both nationwide generally and nationwide mortgages) & all posts appear to be written by nationwide. If it was this year it looks to me as if they are taken down, presumably rapidly from then on? Or is there another Facebook page?PS Our welcome box gift arrived about 6 weeks after we moved in - realise that this is a gift as such and it was not expected but to arrive 6 weeks late seemed to be the icing on the cake of their incompetence!
It was around 23rd June I started to get desperate and posted on their page, they replied and there was then a little back & forth comments between us. We finally completed 4th July and moved on 11th July
I'll pm you my Facebook page name and if you put that in a google search with nationwide building society the convo does come up, along with many other people who were having problems of a similar nature.
I'll pm you my Facebook page name and if you put that in a google search with nationwide building society the convo does come up, along with many other people who were having problems of a similar nature.
These indemnities are nonsense, but they are an easy box to tick for lenders so they will always default to them.
I would agree to the indemnity (which will be less than £100) so that the sale could complete.
The indemnity protects against enforcement action by the local authority, which is why it becomes invalid if you approach them.
The question is if you feel comfortable enough to gamble that the completion of the works will result in the necessary certificates. I don't think you will be under any legal obligation not to disclose the issue to the council. But if you do so and cannot get the work certified (extremely unlikely based on the nature of the defects) it will become your problem on resale.
The indemnity is the wrong approach and effectively worthless. However, due to the low costs and ease of implementation it is part of lenders standard terms. Trying to get them to drop the requirement will mean that an individual at Nationwide will have to step up and make a risk based decision. Not a lot of reason for them to do this, which is why I would go along with the process, despite the fact that it is clearly nonsense.
I would agree to the indemnity (which will be less than £100) so that the sale could complete.
The indemnity protects against enforcement action by the local authority, which is why it becomes invalid if you approach them.
The question is if you feel comfortable enough to gamble that the completion of the works will result in the necessary certificates. I don't think you will be under any legal obligation not to disclose the issue to the council. But if you do so and cannot get the work certified (extremely unlikely based on the nature of the defects) it will become your problem on resale.
The indemnity is the wrong approach and effectively worthless. However, due to the low costs and ease of implementation it is part of lenders standard terms. Trying to get them to drop the requirement will mean that an individual at Nationwide will have to step up and make a risk based decision. Not a lot of reason for them to do this, which is why I would go along with the process, despite the fact that it is clearly nonsense.
Edited by Elysium on Monday 29th December 18:13
This was our idea too but our solicitor is acting for mortgage company too (as they always do) & because she knows that we intend to do the work getting a worthless indemnity would put her in a position she won't go to. Do understand.
Manic at work today but off tomorrow so will try nationwide again.
Manic at work today but off tomorrow so will try nationwide again.
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