nationwide building society

iantew

i have a mortgage with the nationwide. it is currently a repayment mortgage but i want to change it to interest only for about 6 months. i phoned them and asked them and they point blank refused to do it !! has anyone else come across this problem ? are they allowed to do it ?? does anyone have any suggestions as to how i can get them to agree to change it to interest only ??

opinions4u

iantew wrote: »

i have a mortgage with the nationwide. it is currently a repayment mortgage but i want to change it to interest only for about 6 months.

Why?

i phoned them and asked them and they point blank refused to do it !! has anyone else come across this problem ? are they allowed to do it ??

You are asking them to vary your mortgage agreement. You want to change things, they don't. They don't have to, either.

Going on to interest only is effectively borrowing money for that period of time. They don't have to lend to you if they don't want to.

does anyone have any suggestions as to how i can get them to agree to change it to interest only ??

Explain to us the reasons for wanting to do this.

Tell us how much you owe and also how much the property is worth. Also list your current monthly payment and interest rate.

There may be other options, such as extending the term or taking a short payment holiday. It may be that that alternatives that are nothing to do with your mortgage exist.

Conrad

If your needs are such that you would benefit from reduced outgopings for a time then you might want to write to the compliance officer for mortgages at Nationwide. Remind them that under the FSA's 6 core TCF principles, they are duty bound to consider cases of financial hardship.

Go on to explain under the same TCF rule, ALL of thier systems must have been designed to further the aims of TCF 9treating customers fairly).

Ask for a written reply within 7 days and state you may refer to the FOS (arbitration service for the FSA) if need be.

Tuscan

i spoke to nationwide about doing the same thing and was told they only do interest only if you have massive equity, we have around a 100k in our house and was told we would need 150k for them to agree to interest only..

Radiantsoul

I think they are allowed to do it.
Of course they also have to respond to issues of genuine hardship. But they are unlikely to just do it because you ask, from their point of view they increase their risk and you are seeking to change a contract you agreed too.
I would suggest if you have a genuine issue you draw up details of your income and expenditure and a case for why you need help. To an extent they are likely to be less sympathetic if you are paying off other debts in priority to their secured debts, especially if there is little equity available.