Re-fix interest with NAB

This really surprised me ...

Have been trying to re-fix one of my loans with NAB over the last few weeks. It’s one of the smallest loans I have with NAB, there is still 2 years to go interest only. Seeking to fix interest rate for 2 years.

I was advised this morning that to simply re-fix one loan - this will require a full application.

Wondering if anybody has come across similar, if anybody has successfully dealt with it?

(Loan is to trustee of a discretionary trust).

 

What did NAB say? I'm guessing you have slightly less than 2 years left interest only, so to fix for two years would result in extending the interest-only term.

 

NAB haven’t been clear on the reasons why - I received the information via email.

Thank you Simon - this could be the explanation. Tried tackling this head on a month before expiry (phone, email, in branches) - all with no response from NAB when they said they would etc ... to the point it did expire.

Last banker I dealt with was going to get this backdated ... the timing is clearly an NAB screw up. Actually thought this was all done - this information has come more than 2 weeks since sitting with banker.

 

And confirm Simons supposition was absolutely correct.

Thanks Simon, this was useful to know prior to re-contacting Nab.

 

Nab are particularly fussy in this regard

 

Are others in the big 4 more lenient in this regard? Eg. If someone tries to fix for 3 years IO, with only 1 year IO remaining on the existing term, would other lenders possibly allow this without a re-assessment?

 

If extending IO period it would generally require a reassessment.

But NAB seem to want the IO period to equal the fixed period. e.g. you couldn't have 2 year fixed with 3 years IO.

 

This is the frustrating and nonsensical bit.

It feels like the computer said “no”, and it’s the computer running the business.

 

Appears to be fine with CBA in the above scenario. Doing just that now.