Nationwide scraps remortgages for Buy to Let !!!
In an announcement that seems to make no sense, the Nationwide who own their own Buy to Let arm “The Mortgage Works”, have said they will no longer accept remortgage applications from Nationwide customers where the purpose of an increased loan is buying investment property.
A Nationwide spokeswomen said, “as part of Nationwide’s move to a single mortgage processing system, the society is streamlining a small number of specific lending scenarios and reducing manual processes.”
“As a result, additional lending to existing Nationwide residential mortgage customers to purchase a second property, where the new property is to be let out, is no longer available.”
The Mortgage Works, will still accept remortgage applications to fund buy-to-let, but just not from Nationwide customers.
This seems completely contradictory to have a policy from the parent company banning doing business for the purposes of its subsidiary!
Andy Young of TBMC said “there have been restrictions on capital-raising through remortgages for business purposes, so this may be the reason for their decision. Even then, this is a confusing policy indeed.”
In probably even more of a controversial move the Nationwide have stopped lending to our armed forces when they are based overseas serving our country.
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Member Since February 2011 - Comments: 3453 - Articles: 286
10:46 AM, 7th February 2014, About 12 years ago
OMG this must be a PR nightmare for the group.
We don’t like BTL but we do own a BTL lender ???
The only thing that does make some sense is that if Nationwide customers remortgage and raise capital for the deposit on a TMW BTL then the group is effectively lending 100% LTV on the investment property increasing exposure in the rental market.
Member Since January 2011 - Comments: 12194 - Articles: 1396
10:55 AM, 7th February 2014, About 12 years ago
What a very strange decision!
Am I reading this right? i.e. if I’m an existing customer of Nationwide I cannot remortgage to raise capital for buy to lets but if I am not an existing customer I can?
I totally agree with Andy Youngs comment about discriminating against our serving armed forces members too, that’s is just ludicrous! What are they thinking?
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Member Since February 2011 - Comments: 3453 - Articles: 286
11:02 AM, 7th February 2014, About 12 years ago
Yes it sounds more funny the more times you say it!
Member Since January 2011 - Comments: 12194 - Articles: 1396
11:12 AM, 7th February 2014, About 12 years ago
Twitter feedback …
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Member Since July 2013 - Comments: 561
11:16 AM, 7th February 2014, About 12 years ago
So now we have to use our savings for the BTL deposit, and the remortgage for the new car and “once in a life time holiday”….
Member Since November 2013 - Comments: 7
11:26 AM, 7th February 2014, About 12 years ago
And we have recently had notification that our Derbyshire BTL mortgages have been moved to Nationwide!
Member Since November 2013 - Comments: 342 - Articles: 1
11:50 AM, 7th February 2014, About 12 years ago
Reply to the comment left by “Ian Ringrose” at “07/02/2014 – 11:16“:
who would know where the money went to once it was in the customers account ?
Member Since October 2013 - Comments: 1630 - Articles: 3
11:52 AM, 7th February 2014, About 12 years ago
So much for Nationwide trying to present itself as ‘consumer friendly’ compared to the other banks. Our biggest BS [sic] doesn’t want to do business with our troops or its existing customers!
Member Since September 2013 - Comments: 154 - Articles: 1
1:07 PM, 7th February 2014, About 12 years ago
Member Since August 2013 - Comments: 126
1:13 PM, 7th February 2014, About 12 years ago
Seems as if the NW is making a clear distinction between consumer and commercial lending. One suspects to avoid conflict under the incoming regulatory requirements of the Mortgage Market Review. Assessing affordability is an obvious issue that would be extremely difficult to quantify. Given that BTL is a business venture so the outcome is totally unpredictable.