Nationwide interest only isa

razdaz

Hi all

I have a Nationwide repayment mortgage and want to switch to an interest only.

Nationwide require you to have an isa in place to repay the mortgage at the end of the term or have a certain amount of equity in the property that i do not have.

My question is will any isa do or do i need a certain type. I have been looking at the isa threads and get the general gist of them but not sure which one to go for.

Believe it or not i cannot get a proper answer off them.

Cheers

razdaz

CLAPTON

basically you need to go back to nationwide to ascertain what is acceptable but in essense they will want proof that the loan can be repaid at he end of the loan period.
in practice a suitable endowment or ISA is likely to cost you the equivalent of the standard repayment mortgage so i wouldn't ge too excited about this opportunity

dunstonh

Nationwide are sailing a bit close to the wind by doing this. In effect, they are telling you to take out a risk based product. If you dont have the risk profile to do it, then they are basically creating a mis-sale (asuming you use them for the ISA). This is what went wrong with endowments and its a bit of deja-vu.

razdaz

Thanks for the replys.

I will give tem a ring tomorrow and try and get a proper answer.