Switch to interest only - Nationwide being ridiculous

matte1234

Joe_Bloggs wrote: »

One matter of interest is how a payment holiday is reported to the credit reference agencies by Nationwide?
J_B.

I don't see what it has to do with them? Apparently somewhere in the small print it says I am entitled to take 2x payment holidays (between 3-12 months each) within the life of the mortgage so I doubt any credit reference agencies would be involved as its standard practice.

I guess this is built in for people having kids and needing time off which is exactly what’s happened to us.

Joe_Bloggs

@matte1234
According to this Independent article the mortgage lenders have special codes that they issue to the credit reference agencies in the case of a mortgage holiday period. This appears to maintain the repayment history.
I have been told on this forum that my overpayments are also reported to the credit reference agencies. I feel it is worth asking what they will report as it may effect other borrowing options at a later date.
I am all for the mortgage holiday feature of the Nationwide mortgage and I hope you can benefit from this flexible feature.
J_B.

tinkerbell12

I have read this thread with interest. I went into 2 n/w branches before I planned to get pregnant to check I would be able to take a payment holiday on our mortgage - it is the only way we could afford for me to take 9 mths mat leave. We then confidently tried for a baby and I am now due in October.

I rang n/w last week to apply for the payment holiday and have been refused on the ground that we need 80% LTV and our house is worth some ridiculous amount even though an identical one has just sold for £25,000 more. The eligibility was NOT mentioned to me when I asked in branch and I now feel completely destroyed. I then asked about switching to IO when my mat pay falls dramatically but they will not even discuss this with me until it happens.

I have a good history with n/w - never made a late/missed payment and I feel that even though my change in wages will be temporary, they will not budge. I have decided to go into branch next week and plead my case to see if that may help.

The whole thing is incredibly frustrating and trying to plan our finances has completely backfired.

uzubairu

tinkerbell12 wrote: »

I have read this thread with interest. I went into 2 n/w branches before I planned to get pregnant to check I would be able to take a payment holiday on our mortgage - it is the only way we could afford for me to take 9 mths mat leave. We then confidently tried for a baby and I am now due in October.

I rang n/w last week to apply for the payment holiday and have been refused on the ground that we need 80% LTV and our house is worth some ridiculous amount even though an identical one has just sold for £25,000 more. The eligibility was NOT mentioned to me when I asked in branch and I now feel completely destroyed. I then asked about switching to IO when my mat pay falls dramatically but they will not even discuss this with me until it happens.

I have a good history with n/w - never made a late/missed payment and I feel that even though my change in wages will be temporary, they will not budge. I have decided to go into branch next week and plead my case to see if that may help.

The whole thing is incredibly frustrating and trying to plan our finances has completely backfired.

With falling house prices, it was always going to a risk as to what you LTV would be at the time of the application.

I hope your visit to the branch helps your case.