Natwest Overdraft

[tricky dicky]

Advice please,

I have a £250K OVERDRAFT WITH NATWEST, which is secured against rental property. natwest withdrew my overdraft agreement back in July and ramped the interest rate. I have kept within this facility since then.

I have just received a new o/d agreement which carries the same interest, but they want to charge a fee of £1670 for one month, I presume they will keep rolling this month by month.

If I don't sign the new agreement, can they charge the fee?

[Amethyst]

Re: Natwest Overdraft

Why did they withdraw the original agreement ?

So this is a new overdraft agreement entirely because they withdrew the original. Are there any other changes to the terms of the agreement ?

Whats the fee for ?

[tricky dicky]

Re: Natwest Overdraft

They withdrew the original to try and make me re-bank with another lender.
Completely new agreement, without any changes other than the interest rate, which was 2.7 over base, now 5.5 over base.

The fee is an arangement fee.

Thanks Amethyst

[Amethyst]

Re: Natwest Overdraft

Sounds a bit crap (to say the least)

Have you got copies of old and new agreements ? (and can you scan them in)

What was natwests reason for withdrawing the OD ? ( I am assuming it wasn't Natwest said 'we're withdrawing your overdraft to force you to a higher rate loan with us or bank elsewhere')

[tricky dicky]

Re: Natwest Overdraft

I do have both agreements, very basic 2 page affair, i will try and scan them.

Quote from my manager when asked if it could transfer to a loan

I am sorry but there is no appetite to term out an expired overdraft - the Bank is looking for repayment of the facility in full from disposal of property assets, if not from other sources.

thanks

[Amethyst]

Re: Natwest Overdraft

so just calling in their debts then to make the balance sheets look healthier

They gave you the correct notices etc I assume before withdrawing the overdraft, and also assume theres terms in the original agreement which allows them to do this. Not particularly fair if they then just allow you to start a new agreement on exactly same terms with higher rate, why not simply vary original agreement, unless it was a fixed period ?