Dunmovin' (not) (Nationwide Building Society)

Member Name: delawney

Product:	Nationwide Building Society
Date:	10/11/03 (2297 review reads)
Rating:

Advantages: Easy, Good value

Disadvantages: Bound to be some but I've never experienced any

Every so often there comes a time in your life when you have to take a deep breath and say - "darn it, I need to sort my life out!" (or words to that effect). So, having finally decided I was indeed completely miserable in my job, I decided to look for a new one, closer to my family, 250 miles away.

So, that's what I did, and now mr delawney and I have to find a new house 250 miles away, otherwise it might just be a little bit too far to commute.

Thus, I'm in the process of taking out my fourth mortgage, and like the three before it it will be with the Natiowide Building Society.

Choosing a mortgage is a tricky and confusing thing. Should I have a fixed rate? A discounted variable rate? A tracker? How much can I afford? How much will it cost? How much will I actually have to pay back? Isn't it all just a little bit too scary? Perhaps I should just by a caravan and be done with it.

First time round I used one of those independent financial advisor thingys. Not sure how good they are really, unless you get very lucky. Anyway, all he seemed to do was print out a load of the current offers from some groovy search facility he had, and I pretty much did all the choosing. Darned quick way to earn a commission, if you ask me.

The mortage I settled on was a fixed rate mortgage with the Nationwide. It wasn't the lowest interest rate, but it wasn't far off, and I liked the fact that although there were some redemption penalties during the fixed rate period, it was portable (i.e. you could continue the mortgage on another property if you moved house) and it didn't tie you in to a variable rate for any period after the fixed rate ended.


*** Products on Offer ***

The Nationwide currently offers the following types of mortgages:

* Standard Variable Rate Mortgages (attached to their current mortgage rate) - no redemption penalties

* Fixed Rate Mortg
ages (2, 3 or 5 years)
* Discounted Variable Rate Mortgages (2, 3 or 5 years)
* Tracker mortgages (track the Bank of England Base Rate) (2, 3 or 5 years)
- on these three types of mortgage, a reasonable redemption penalty if redeemed during the term, but no tie ins afterwards. The mortgage is portable, so you can move house without incurring a redemption penalty.

As far as I am aware the Nationwide do not currently offer an "offsetting" arrangement with a current account.

I have not provided interest rates as these change all the time, but whenever I have moved house I have always found their rates to be very competitive, and this time is no exception.


*** So What's The Process Then? ***

It was all a bit scary the first time, as I wasn't really sure what to expect, but the Nationwide made it really easy. You start off with a visit to your local branch to see your mortgage advisor, and they talk you through the whole process.

Stage 1: Can you afford it?
The first thing they will do is check your income (and your partner's income, if applicable) and your outgoings to see if they are going to be prepared to lend you what you want to borrow. Now, if you've been a bit over zealous with your offer you could fall at the first hurdle, but you can't blame the Nationwide for that!

Stage 2: Choosing your mortgage
Your mortgage advisor will then help you select the type of mortgage ("product") you want to apply for. Basically, this means they will explain what the different products are, and what the monthly repayments will be, but the final choice is really up to you. If you are not confident in this area, this may be the point where you wich to seek independent advice.

Stage 3: The application
Having decided which product you are going to spend the next 25 years or so servicing, the mortgage advisor will then work through the applicati
on with you and if applicable your partner. They will need to see all your addresses for the last three years, proof of identification (current passport or driving licence) and if it is your first application with them they will probably want to see proof of income as well. This usually consists of your last three months payslips and your last P60 (year end tax form from your employer). They will also ask your employers details so they can contact them for a reference.

Stage 4: Coughing up
Before your application is submitted, they will also want some cash. They're not going to do anything for free you know! They will need a mortgage arrangement fee (currently £185) and payment for either a building society valuation of the property you are purchasing (£175) or a Homebuyer report (approx £350 depending on the property). They won't start processing your application until they have payment, and you also won't be guaranteed the mortgage rate you have applied for until they've got some of your hard earned dosh.

Stage 5: The waiting
Then, you wait. And wait. Maybe bite your nails a bit. You'll get your valuation/homebuyers report. And then if all is well, shortly after, you'll get your mortgage offer. In my experience (3 times and starting the fourth) the Nationwide have always proved extremely prompt in this respect.

Stage 6: Afterwards
I have never, ever had any reason to complain about the service offered from the Nationwide. Quite the opposite in fact. They send accurate annual statements (I check them!), and if you can't be doing with only checking them once a year, sign up for online banking and you can view them from the comfort of your computer chair.

I have already moved twice since taking out my first mortgage, and have always found it extremely easy to make my new arrangements with the Nationwide. On both occasions, I took out additional mortgages rather than redeeming
my original (fixed rate) one. This gives you the added bonus of being able to spread your risk, and have different types of mortgages (e.g. a fixed, a variable and a tracker). My portable fixed rate did indeed prove portable, as it has already moved twice!

As an extra bonus, life is much easier for an existing Nationwide customer. When you move house, they give you free mortgage protection insurance for the first year.

When your product comes to the end of its term (e.g. the end of a fixed rate period) the Nationwide will write to you in advance to let you know. If you do nothing, your mortgage will simply transfer to the Standard Variable Rate. If you want to arrange a new product, you just pop in to your branch and arrange an appointment with a mortgage advisor to do so. The process is extremely straightforward, and once you have decided on your new product all you will have to do is sign a piece of paper and hand over your £185 mortgage arrangement fee. Sounds steep for half an hour's work on the Nationwide's part, but in their defence I don't think they're any different to any other lender in this respect.


*** The Verdict ***

All in all, I have never had any reason to be anything but happy with the mortgage service I have been provided with by the Nationwide, which probably explains why I have been back again, and again, and again. Moving house once more (and this time on a much greater scale!) it's nice to have the familiarity and the confidence in the service I get from them as a lender.

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