Nationwide payment holiday

Kingerem1

Hi,

We have been with Nationwide for years (have always come out best when changing our mortgage). I see that they have changed their terms as regards to payment holidays and new customers. However, I just went onto their website and did a 'webchat' with a mortgage advisor and they stated that payment holidays are no longer available at all....existing or new customer it doesn't matter.

Their website stated that any new applications approved from March 2010 will not be able to take a payment holiday but existing customers must have had a mortgage with them for at least a year and have a LTV of less than 80%.

We were really counting on this in a few months when I go on mat leave (we did this last time too). Now I'm in a complete panic.

Does anyone know anything about this? I have tried phoning Nationwide but since I don't have our account number with me (I'm at work) I can't get to talk to a real person about it!

Many thanks

beecher2

I'd advise going onto the Debt Free Wannabee forum and posting a Statement of Affairs in order to get advice on how to cut down on expenditure elsewhere. Using authorised arrears to cover maternity leave isn't really a good idea. Nationwide are certainly under no obligation to guarantee you a mortgage holiday, and can change their criteria at any time, but best to phone up when you have your number with you and see what they say.

Kingerem1

We have cut expenditure right down. So already looked into that. If we could find the £1000 a month then we'd be doing that rather than the payment holiday. I know all the pros and cons of a payment holiday (maternity leave being one of the situations stated by lenders as a reason for a payment holiday). So that's sorted.

Just wondered if any one else had had any experience with this?

Thrugelmir

Just a general reflection of the tightening of credit availability, and the worsening of consumer finances thats enviably to come.

beecher2

Kingerem1 wrote: »

We have cut expenditure right down. So already looked into that. If we could find the £1000 a month then we'd be doing that rather than the payment holiday. I know all the pros and cons of a payment holiday (maternity leave being one of the situations stated by lenders as a reason for a payment holiday). So that's sorted.

Just wondered if any one else had had any experience with this?

You could get a lot of help on the DFW boards so I would urge going there - there's certainly no guarantee you'll get a holiday from your mortgage payments and they'll find areas you can look at.

Authorised arrears are one of those things which would never have happened before credit went crazy - maybe we're heading back to a time of normality when they aren't on offer.

Could you ask to extend the term of your mortgage maybe?

Kingerem1

Well, I spoke to Nationwide yesterday and yes we can apply for a payment holiday on our current terms and conditions.

We have to have a LTV of 80% or less......ours came out (according to their calculations) at 83%! When I asked how much they valued our house at they said the House Price Index had come out with £188,000.

Our house is a new build and we moved into it a year ago. Since moving in, all the houses are now occupied and when checking the prices of the houses sold on our road (all part of the new development and all 4 bed terraces so like for like) the average house price for the houses sold along the road was £204, 416 (sold between Dec 2008 and Feb 2010). I do accept that yes, our house may not be worth £204,000 and it probably isn't but it seems a world of difference. Even if it were worth an average of the 2 valuations we would fall into their criteria of the 80% LTV. Ultimately a house is only worth what some one is willing to pay for it should it be up for sale.


It just bugs me that the way they work out the LTV is not transparent as the woman I spoke to said it was based on a number of things including the HPI. So we have no way of checking it out for ourselves.

I know there will be people saying 'Nationwide are under no obligation to grant the payment holiday'. Of course no they're not. However it does feel like they're using these calculations as a bit of a get out for those of us who are still on the old terms which allow a payment holiday.

Anyway rant over. They said to phone back nearer the time to see if it changes.