8:55 AM, 15th November 2016, About 6 years ago 6
Following the hugely impressive decision in West Brom (well done Mark and team!), I’ve been looking into the position regarding my Nationwide mortgage. This started off as a tracker residential mortgage with Portman in 1996. I moved in 1998 and applied for, and was granted, consent to let.
Portman applied a 1% loading to the mortgage. Portman was subsequently taken over by Nationwide.
In 2014, Nationwide applied an additional 1.5% ‘letting charge’ on the basis of the ‘change of use’ of the property.
This seems to be inline with the West Brom case. Further, I do not consider that there was a ‘change of use’ in 2014 (as the property changed the use in 1998 and had been let since).
Nationwide do not see it like this. Neither does an adjudicator at the FOS. They both take the view that the West Brom case is different as it was a buy-to-let mortgage. To my mind, this makes no difference.
I am now inclined to discontinue the FOS process as it appears to be an ill-informed view and pursue the matter in Court. Before I do that, I would appreciate any thoughts or whether anyone is aware of any other actions against Nationwide.