Being hold to ransom by Nedbank?

I recently app**** with FNB to switch my loan from Nedbank. The approved the loan, but only offer 20 years which does not really make it very appealing. I contacted Nedbank on-line and it rejected/ declined my on-line screening Credit Check X Affordability X. I contacted Nedbank and explained that I wanted to see if I can rather apply with Nedbank again as I could get a longer term for repayment. I was advised by Lana ' Good day Mr De Ru

Trust you are well

Kindly note you have requested assistance and the only way it can be accessed for further finance is if the bond is not under cancelation, so if I submit an application with the hold on your home loan then it will be rejected, it is not Nedbank’s policy to finance on a bond that is going for cancellation'

Is this fair practice? Why I am being held to ransom? If I agree and they do not give me the loan I have pay all the penalties when I do decide to conclude with FNB.

Please can this be investigated?