reported to me: - 8 October 12:31

Nationwide Building Society now discriminates against members of our armed forces.

I have today received an e mail from the regional manager stating that if clients have had a BFPO (British Forces Post Office) address in the last 3 years they will not be a suitable applicant. This means that anyone who has been fighting in Afghanistan for example would be discriminated against.

A sector of society where people struggle to get on the housing ladder is the military where the need for advice is crucial to guide them through the numerous possibilities and problems they will face.

British military personnel are engaged all over the world from Afghanistan to Cyprus, meaning they often have no fixed address. When on duty all military personnel are assigned a British Forces Post Office number where they can receive post. As this number is not a proper address it does not appear on a credit search so all military would fail credit checks and be refused a mortgage.

If you think this is disgusting behaviour. Please do feel free to share.

Perhaps a move of our savings may assist in the NATIONWIDE BS in having a rethink of this deplorable treatment of our armed services.

8 October 13:45

More info on the subject: -

I am a mortgage broker and received an e mail from my local BDM yesterday relating to changes, or "streamlining their mortgage process". As a result the following application types will no longer be available through Nationwide: First point was if you had a foreign residential address in the last 3 years. second was as follows: "Clients who have had a British Forces Post Office (BFPO) address in the last 3 years"

Comment history

This is indeed very unfair.

This is nothing new - banks, mortgage lenders, mobile phone companies, credit card companies and others have been discriminating against the Armed Forces serving overseas for years.

Last year, the MOD introduced new BFPO postcodes specifically to address such issues, enabling Service personnel and families both to order goods and services online, and for credit purposes. Major lenders are supposed to be onside with this - it is, after all, a fundamental part of the Covenant that Service personnel should not be disadvantaged by their service.

If we can verify the authenticity of this story, I have a good conduit to get it brought up at a reasonably high level of the chain of command and with Ministers.

Perhaps Mike can provide this information to you SP

get back to you!

O.K. Made an approach to the person concerened and await outcome of my messaging, S.P.

Thanks Mike

I have spoken to Nationwide on this issue and have the following statement from them.

Nationwide understands the challenges faced by our armed forces in getting a mortgage and has measures in place to support armed forces personnel, including giving specific guidance to our staff and offering individual underwriting consideration. The Society will continue to offer mortgages direct to borrowers with a BFPO address, but will be unable to accept such mortgages via intermediaries due to a simplification of our mortgage processing system.

The Society has a strong history of support for, and consideration of, the needs of military personnel –

 

• Nationwide has introduced the freedom for service personnel who are posted overseas on operational duties, to rent out their property, without charge or having to switch to a Buy to Let mortgage
  

· Nationwide employees have been given specific guidance about the issues affecting customers in the armed forces and how to be flexible in their approach, including offering individual underwriting consideration

 

• It is one of the UK’s largest supporters of low cost home ownership schemes which Armed Forces Personnel will have access to
  
• It also accepts deposits via the LSAP Scheme - a long-established MoD scheme under which the government provides a loan for the deposit on a property
  

· It continues to work closely with the Council of Mortgage Lenders and Building Society Association to devise a proactive campaign of support

Especially at a time of ongoing active conflict overseas, we believe it is right that our industry sets out its support for military personnel. Together, we need to offer practical initiatives that help to remove financial worries from these brave people and their families, particularly when they are risking their lives daily to support us and ours.

In addition, and for clarification, the announcement which the original poster interpreted was this

From 5.00pm Friday 11 October 2013, we'll be streamlining our mortgage process by withdrawing a small number of manual paper based applications.

 

As a result, the following application types will no longer be available through Nationwide For Intermediaries:

 

 

• Clients who have had a foreign residential address in the last 3 years
  
• Clients who have had a British Forces Post Office (BFPO) address in the last 3 years
  
• Genuine Bargain Price
  
• Restricted Resale Price / Discount Market Schemes
  
• More than two applicants for new borrowing
  
• Further borrowing.

Thanks for that, Manchesteruni.I am pleased to see Nationwide's clarification.The lovely Mrs (Major) SP and I are with Nationwide and have no complaints.

Well I have received an e mail confirming that any service personnel who wish to have independent mortgage advice will either have to pay for the services to compensate the fact that Nationwide will not allow IFA's or mortgage brokers to look after forces directly as they will only do over the counter business.

It is a real shame that banks take this type of attitude as it restricts the market for forces. As I was in the Artillery for ten years it does feel like a double whammy for me. If you need any further information on this I can forward it so just let me know.

Kind regards ]

Latest update I have received from contact:-