Mortgage Payment holiday refused - Nationwide

simonandclare

Hi All

So angry right now!

We rang our mortgage company, Nationwide about 6 weeks ago with the idea to apply for a mortgage holiday. We only really want a 2 month payment holiday, just would be nice to put the money aside ready for christmas shopping we thought. I lost my job at the start of the year as the company I was working for refused to let me do more child friendly hours when I tried to return to work following the birth of my 3rd child. My husbands company also suspended all bonus incentive schemes again at the start of the year, blaming it on the current recession, so in short money has become little tight of late!

We had our house valued by 2 independant local estate agents and they both said its worth what we paid for it 4 years ago, £200k, which at best we are happy that like many people we haven't lost value from our property in the current climate.

Our mortgage is currently £152k so as far as the small print of our mortgage contract is concerned are house meets the 85% loan to value they say it must be at to qualify for a payment holiday. The Nationwide took all our information over the phone and went ahead with the application for a payment holiday and this is were it all went wrong. The house price index values our property at £175k so with an outstanding balance of £152k on our mortgage we apparently don't qualify for a payment holiday? We then tried to switch our mortgage to interest only but for this we have to have £150k equity in our property??????????, so again this was a No!

Can anyone advise if theres a way we can change the way the Nationwide value our house, surely there's someway of challenging the house price index as not every property on the same road is the same size, or in the same condition?

Just really fustrated with all things money at the moment so all constructive replies would be greatly received.

Thanks x

dunstonh

just would be nice to put the money aside ready for christmas shopping we thought

This is what is so wrong with many people in the UK nowadays. You have totally inappropriate priorities. Sorry to say that but not paying your mortgage so you could do some christmas shopping just seems wrong to me.

We had our house valued by 2 independant local estate agents and they both said its worth what we paid for it 4 years ago, £200k,

Was that a mortgage valuation price or estate agent price (where you would typically expect to be knocked down around 10-15%)? If you take 15% off the estate agent price, then you are in the range of the mortgage valuation.

As mentioned above, asking if they will accept a valuation done by visit which you will pay for is about your only option. However, be wary that it is unlikely to match an estate agent valuation.

pinkteapot

http://www.lovemoney.com/news/property-and-mortgages/mortgages/3172/the-true-cost-of-a-months-mortgage-payment-holiday

Is it really worth the cost to go shopping with your mortgage repayment money?

Tabatha_Kitten

OP, you need to put your SOA up and lets see if we can all help you cut down elsewhere.
Going into arears on your mortgage to finance Christmas is not the answer.

poppy10_2

dunstonh wrote: »

This is what is so wrong with many people in the UK nowadays. You have totally inappropriate priorities. Sorry to say that but not paying your mortgage so you could do some christmas shopping just seems wrong to me.

From other posts by the OP it looks like they have around £47,000 of unsecured loans in addition to their mortgage. Attitudinal problems seem deep-seated. I can only see this ending in BR.

maninthestreet

https://forums.moneysavingexpert.com/discussion/3432127=

...and their house was valued at £190K, not £200K.

claire16c

A mortgage holiday to go Xmas shopping? Did I actually just read that?

DVardysShadow

claire16c wrote: »

A mortgage holiday to go Xmas shopping? Did I actually just read that?

Yes. This is to celebrate the birth of the man who said Blessed are the poor, for yours is the kingdom of God.

Who are we to deny them fast track entry to the kingdom of God?

opinions4u

OP, I just looked back at your previous posts including a SOA. Borrowing for Christmas (and that is what you want to do) is a deeply flawed approach to finances. Kids respond better to time and attention than they do to a PS3 and an Xbox.

Monthly Incomings:

Husbands salary - £3030
My salary - £0 (we had our 3rd child 18months ago, I am not currently working. This would therefore be the obvious way to bring in some more money but having looked into child care we cannot afford to have me go back to work. I have Fibromyalgia which brings on Cronic Fatigue Syndrome. My husband works away 2 or 3 times a week so this also means regular hours anywhere are not possible. I have started my own Jewellery party planning business which with a lot of prior planning can sometimes mean a party the odd Friday evening or a craft fayre every now and then if grand parents are available for child care. Phew - but just trying to be honest).

Benefits - £180 child benefit

Total - £3210

Monthly Outgoings:

Mortgage/Rent - £587 (part interest/part repayment). We have just put this to interest only so new cost will be £317. How will you ever repay this? I can understand a lender refusing a payment holiday when they've already reduced your payments, effectively to allow you to meet payments on debts to other lenders.
Council Tax - £139
Gas and Electric combined- £147. Jumpers. Turn it down. Have showers instead of relying on hot water for the bath.
Water - £46.27. Perhaps don't flush for a wee? When it's yellow let it mellow. When it's brown, flush it down.
Kids Savings (3 children split equally) - £60. Sorry, this is mad. You're not paying your full mortgage payment but you're saving for your kids. Bonkers. Stop this saving until your finances are in good order.
Life Insurance - £62. Review the cover. Can you get identical cover for less?
Buildings and Contents - £38
Mobile Phone - £26. Go PAYG and only accept incoming calls. Or SIM only on a £10 a month deal.
Private Health Insurance (covers dental/optical etc) - £25
Contact Lenses plan - £9. Wear glasses. Does the health plan above cover the cost?
TV License - £12.37
Sky £52. Freeview's good enough. Scrap it. You're prioritising TV rather than paying your full mortgage payment.
Phone - £50. Why? I pay £15 a month for phone and internet.
Gas Service Plan - £17.50. Is there a cheaper one avaialble? If it's a newer boiler do you need cover at all?
Food/Nappies/Baby Formula - £450. Seems high. Can you save money by bulk-buying nappies when they're on offer? This could be the biggest area where you could make savings. Spend £250 on durable and eco-friendly reusable nappies?
Car Insurance 1 - £53.20. Get rid of car one and keep car 2.
Car Insurance 2 - £33.05
Diesel - £0 (paid for by my husbands company - classed as Benefit in Kind)
Petrol - £50. Go out in the car less.

Total: £1857.39

Plus:-

Tesco Loan – £460.77 monthly (Balance £17,500 APR 11.39% Length of term 60 months, 44 months to go)
A A Loan - £223.73 monthly (for husband car paid with by monthly car allowance within his monthly salary) - Balance £4500 APR 8.55% Length of term 50 months, 19 months to go)
Homeowner Loan - £138.80 monthly (£15,500 left to pay over 18 years). This may be another reason that Nationwide won't give you a payment holiday.

Tesco Credit Card – Balance £2300 (limit £3825) APR 17.47% (on 0% for 9 months expires October 2011)
Overdraft - limit £1200 which it runs to each month

Complete change of mindset needed. Debt for Christmas is stupid. You can get on top of this. But only if you want to. And payment holidays won't help.

Could your husband's company employ you part time and pay you £7,475 a year, reducing his income and maximising your tax allowance? That would be worth over £100 a month. Husband's accountant should be able to advise.

Do you service or tax the cars?

dunstonh

Mobile Phone - £26. Go PAYG and only accept incoming calls. Or SIM only on a £10 a month deal.

Or get rid of it altogether. A mobile phone is an unnecessary luxury.

Private Health Insurance (covers dental/optical etc) - £25

Most of these are cash cows to the insurers and not worth the money you pay for them. Some exceptions but this a luxury insurance rather than a vital one.

Sky £52

!!!!!!. Massively in debt. Heading towards bankruptcy but pays £52 to sky.

Also, notice no pension payments in the list. So, there isnt even the fall back option of using the pension lump sum to clear debts in retirement. Currently, you cannot afford your lifestyle on £3210pm. Just wait until you get to retirement and have to live on £700pm.

Phone - £50.

I have two phones, one of which is for business and gets business volume calls and a lot of 08xx numbers and I still come in less than that per month.

I dont want to duplicate more of opinions4u post but it is clear that you are in the !!!!! and also in denial. You are spending money you do not have and you are only heading in one direction. It is just a matter of time before you lose your house unless you take the situation seriously.

Currently, you are a perfect example of what went wrong when you give easy credit to people with no self control and responsibility. You need someone to tell you how it is as it is clear you are in total denial.

How will your children like it if you buy them expensive presents this year but your house is repossessed and you lose everything a few years down the road?

DVardysShadow

dunstonh wrote: »

How will your children like it if you buy them expensive presents this year but your house is repossessed and you lose everything a few years down the road?

The can live in a stable and the kids can sleep in mangers. It will be authenticly christmassy.