Nationwide Payment Holiday Help

ukdy

I just called up Nationwide to enquire about a payment holiday. Previously they have said that I was entitled to a holiday of 12months but their new rules because of the "current climate" now mean that they will only give 6months.

They say their decision is based on the LTV of the property (£220k with 80k equity) and the reason for the payment holiday (return to education for 12 months)

They won't tell me what reasons would let me take a 12month break. Can anyone offer some advice or even point me in the direction of someone who works for Nationwide that would give me some more info on the criteria?

Thanks.

Radionotme

How long have you had the mortgage, and have you made any overpayments in the time that you've been with them?

ukdy

Have been with them 5 and a half years, first product was 3 years, second product expires July 31st next year. Both fixed rates for the 3 year duration.

No overpayments, no missed payments.. perfect customers!

Also no other payment holidays.

Thanks

Thrugelmir

The "criteria" is to do with current economic conditions and the increasing tightening of lending policies in the past 2 years. Your rating of yourselves as "perfect customers" has no bearing, except that this reflects in the fact that the NW will grant you a payment holiday. There is no automatic entitlement to a payment holiday.

Senior_Paper_Monitor

The big issue (all lenders) is usually demonstration of ability to pay the increased costs resulting at end of 'holiday' - six months is generally all they will consider these days. At < 65% LTV you would normally be considered reasonably favourably subject to all the other issues stacking up (I asume you are full repayment?) so ability to pay at end of period is most likley cause.

ukdy

thanks for the comments guys... i might take the 6 months, reneg to a better product in July next year and then see how i get on with lower payments!

:-)

getmore4less

A payment holiday and reduced income might make a new deal less easy to get.

Have you looked at interest only that will stop you debt getting bigger which it will with a holiday.

MrsManda

The basic criteria for NW Payment Holidays are:

Payment Holidays

• you have had your mortgage for more than one year, and
• your mortgage is less than 80% of the value of your home at the end of your payment holiday (conditions apply).