Our article about Nationwide charging 1.5% for its letting mortgage customers caused a storm of protest from many previously loyal Nationwide customers, as you can see from the comments attached to that post.
Many Nationwide customers have complained about this punitive 1.5% rise in mortgage rates to the Financial Ombudsman, who has now exerted pressure on Nationwide to modify their rate increase policy.
This is on the grounds that customers with fixed rate mortgages cannot move to another mortgage provider if they don’t want to pay the 1.5% penalty, as they will incur an early repayment charge, which is deemed unfair by the Ombudsman.
So what Nationwide are now saying is that they will waive the 1.5% rate increase on fixed rate mortgages until the mortgage ends its fixed rate term and reverts to a standard variable rate mortgage which does not attract an early repayment penalty if the account is moved to another mortgage company.
It appears from those commenting about this, that fixed rate mortgage customers are not being hit with this rate rise from Nationwide, but what about those who still feel aggrieved by the Nationwides’ decision to charge these rate increases?
For example, standard variable rate mortgage customers will be incurring these charges soon, if they are not already.
If you want to complain to Nationwide then you must follow a clear procedure that is tracked within the building society and has escalation points that receive attention from senior managers. As a final port of call, the Financial Ombudsman will be involved.
This is how you complain to Nationwide about their 1.5% mortgage rate rise if you are letting out your property.
- Either visit your local Nationwide branch or call their customer services department on 08457 302010 to register your complaint.
- Explain clearly and politely what your complaint is. Ensure that it is logged and that you are given a complaint reference number. Ask to speak to a supervisor if necessary.
- You should receive a letter from Nationwide within seven days. This may contain their response to your complaint. If you are unhappy with their response then request that the complaint is escalated to a senior manager.
- Nationwide promise to respond to the complaint at senior management level within a further 28 days. If you are still not happy, then escalate the complaint to the member service department. You will be given their address by Nationwide. If you are not, then ask for it.
- There is a further 56 day window for the member service department to respond. If you remain dissatisfied then you can take your complaint to the Financial Ombudsman, see address below.
You could, of course, just speak to the Financial Ombudsman directly, however by following the complaints procedure outlined above, senior Nationwide managers will get visibility of your complaints and will be able to gauge the extent of unhappiness from their customers who were previously content with Nationwide.
This is how to contact the Financial Ombudsman Service:
Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
0845 080 1800