Nationwide Mortgage Holiday

SC777

Took out mortgage just over 12 mths ago, on a new home, we had undertaken alot work over the past few months, and original budget for improvements were insufficent.

I approached my mortgage lender (nationwide) at branch to ask what options are open to me. LTV on my property is 65%, but mortgage provided is maximum my current income will allow. The offer of Loan was suggested. I asked about Mortgage holiday, and was informed that you have to apply by phone to head office. I was advised not mention that I had already spent the money, and to say it is for home improvements, as this was feature of mortgage I should be able to secure it. I spoke to call centre, and was quickly blockaded, the mortgage hoilday is only available if you are financial difficult and are unable to make payiment - I challenged this abit, so good credit history, good LTV, in employment for 15 year straight etc - no, you have to be difficuties.

Fair enough, being in difficulties is who different ball game, and the offer of payment hoilday is good mid step to this.


I tempted to argue this further, because fundamentally, this feature that was sold with product, the issue of course is the Nationwide is protecting themselves. Has anyone had similar experiences or should I adopted different tact? move provider end of current deal (suggested this, did not even get a reaction, go then) complain and pursue - or just cut my loses and move on.

Thanks for any experience shared.
:wave:

Joe_Bloggs

If you need a mortgage holiday then you have botched your budget. Why would a lender lend you more money if you can't budget? You could ask them to extend the term of the mortgage. Then make overpayments to compensate as soon as possible when finances are less pressing. I know how tough the early years are on a mortgage but to ask for a holiday does not inspire confidence.
J_B.

Thrugelmir

SC777 wrote: »

I tempted to argue this further, because fundamentally, this feature that was sold with product, the issue of course is the Nationwide is protecting themselves. Has anyone had similar experiences or should I adopted different tact? move provider end of current deal (suggested this, did not even get a reaction, go then) complain and pursue - or just cut my loses and move on.

Then you should have enquired at the time of taking out the mortgage. The terms under which a payment holiday would be granted. If you expected to use the mortgage similar to a credit card or overdraft to provide cheap finance then you were totally mistaken.

Doing the renovation work beyond your budget was your choice.

Have you ended up with unsecured debt, ie. credit card or loan to fund the shortfall?

Burridge60

Nationwide do allow payment holidays and they are easy to arrange as long as you have overpaid sufficient that your payment holiday does not mean you are borrowing more capital debt.

You really should have read the paperwork more thoroughly. It is as plain as the nose on your face.

CloudCuckooLand

You chose a house price that required a 65% LTV. You could have picked a different house. If you wanted a contigency fund you could have gone for a 75% deal, and held back 10% for improvements.

If the improvements were then completed within budget, you could then use the 10% to make overpayment(s).

Its not rocket science.

Sarah Beeny has been banging on about adequate contingency funds for years....is no-one listening to the poor woman?

Radiantsoul

CloudCuckooLand wrote: »

Sarah Beeny has been banging on about adequate contingency funds for years....is no-one listening to the poor woman?

Most of us are too busy looking at her breasts.

SC777

Thanks for responses - I appreciate that it was my choice to go over budget, but I did felt I had adequate funds plus good reserve. Even Sarah B hits problems, that she has do voice over for morrison ads for cheap wine and chocolate - although she always expecting.

While unsecured debt is not massive under 1.5% of current property value - this issue I posted, is about nationwide facility for mortgage hoilday is really not what it says on tin - it sold as feature, but not as we know it!

The real question / issue has anyone successfully secured a Mortgage Hoilday from Nationwide for an other reason than financial hardship - if not, should the nationwide be selling there products with this feature. I know I have not got another oppurtuity to request it, but I think other should be aware.

thanks for sharing your experiences

kayla3600

I enquired to nationwide about a payment holiday last year, this was because my husband was looking to join the RAF so would be starting on a low wage and wouldnt be able to keep up the mortgage payments. Our LTV was roughly 75%, and all payments had been made on time for the previous year (have all of yours been on time?) and we were told that looking at the figures and info they had we would be accepted if we wished to proceed. There seemed to be no other hidden terms, everything they had told us was also shown in the details of our mortgage. We didnt take it in the end because he decided not to join.

SC777

Thanks, your are angel :A

MrsManda

SC777 wrote: »

I spoke to call centre, and was quickly blockaded, the mortgage hoilday is only available if you are financial difficult and are unable to make payiment

This isn't true.http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1364

Mortgage payment holiday

For mortgages reserved on or before 3 March 2010 you can apply for a payment holiday of between three and twelve months if:

• 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).

If you want to find out more information or apply for a payment holiday please call us on 08457 30 20 10.

http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1364

Obviously conditions apply but if you meet the criteria above I suggest arranging an appointment at a branch and speaking to someone face to face.

Duffelcoat1

This is not true, the Nationwide website says these are the conditions but they are not, they are only the preliminary conditions before they will talk to you about it.

They will not tell you the reasons they allow a payment holiday but it isnt as they may have portrayed an option to most people.

Home improvements dont count, spending on anything doesnt count.

I get the impression you will only get the payment holiday if you cant pay your mortgage and can prove it, presumably by not paying it so the payment holiday is not open to most people unless you are going down the tubes anyway.