Nationwide refuses to extend mortgage

achilles1

Hello,


My interest-only mortgage is coming to an end and I have asked Nationwide to extend it, on current terms, by 4 years to allow me to save enough to repay it.



Unfortunately they refused to do that saying "we no longer offer interest-only mortgages". However, I have not asked for a new mortgage, just to change the end date of the current mortgage I have with them to give me more time.


Is there anything I can do, can I take the case to the Ombudsman? I thought large lenders such as Nationwide are supposed to help customers to repay their mortgages...

antrobus

You are asking for a new mortgage.

Apply for a repayment mortgage. The Nationwide might be interested, or speak to a broker.

[Deleted User]

achilles1 wrote: »

Hello,


My interest-only mortgage is coming to an end and I have asked Nationwide to extend it, on current terms, by 4 years to allow me to save enough to repay it.



Unfortunately they refused to do that saying "we no longer offer interest-only mortgages". However, I have not asked for a new mortgage, just to change the end date of the current mortgage I have with them to give me more time.


Is there anything I can do, can I take the case to the Ombudsman? I thought large lenders such as Nationwide are supposed to help customers to repay their mortgages...

If you're term is coming to an end, then you are indeed asking for a new mortgage.

NW do not offer interest only as you have found out, so move it to a different provider that does

achilles1

antrobus wrote: »

You are asking for a new mortgage.

Apply for a repayment mortgage. The Nationwide might be interested, or speak to a broker.

Yes, they could offer me a new part-repayment part-interest mortgage but I do not want that. I just want to continue with the current interest-only mortgage for a few more years, why are they making such a big fuss about it?


You see I am currently on favorable terms, if I was to get another mortgage my monthly payments will definitely increase.



If I take it to the Ombudsman, do I stand a change of winning?

[Deleted User]

achilles1 wrote: »

Hello,

Is there anything I can do, can I take the case to the Ombudsman? I thought large lenders such as Nationwide are supposed to help customers to repay their mortgages...

Nationwide have presumably contacted you prior to this asking for a discussion about how you are going to repay the debt. Did you come up with a plan at that point? If you were told back then that a term extension was a possibility then maybe you could complain about that being revoked

muhandis

If Nationwide have said that they can move you to a new mortgage (repayment, part-repayment, etc) then it is unlikely you will have much luck with the FOS.

achilles1 wrote: »

Yes, they could offer me a new part-repayment part-interest mortgage but I do not want that. I just want to continue with the current interest-only mortgage for a few more years, why are they making such a big fuss about it?

You see I am currently on favorable terms, if I was to get another mortgage my monthly payments will definitely increase.

If I take it to the Ombudsman, do I stand a change of winning?

[Deleted User]

Hi,


how long have you had your mortgage, and what have you got in place for payment, what is the shortfall?

achilles1

Deleted_User wrote: »

Nationwide have presumably contacted you prior to this asking for a discussion about how you are going to repay the debt. Did you come up with a plan at that point? If you were told back then that a term extension was a possibility then maybe you could complain about that being revoked

Hi,


Yes, they did contact me regarding how I am going to repay. My plan is to save enough money and then repay the mortgage, I just need a bit more time. It is not unreasonable to ask for more time in order to be in a position to repay the mortgage, right?

[Deleted User]

Hi,


maybe they will accept what you can pay back now and put you on a repayment mortgage.

[Deleted User]

achilles1 wrote: »

Hi,


Yes, they did contact me regarding how I am going to repay. My plan is to save enough money and then repay the mortgage, I just need a bit more time. It is not unreasonable to ask for more time in order to be in a position to repay the mortgage, right?

Its not entirely unreasonable but we live in a different regulatory world now. 10 years ago you would have had this extended no problems. Its only in the last few years that residential interest only is coming back to the table at all, albeit in a much tighter fashion.

The facts are facts though, you made an agreement to repay the loan on a particular date. You are unable to stick to the agreement so they are well within their rights to refuse to extend it.

If you are able to save enough to repay it within 4 years, why not just do a 4 year repayment mortgage? Even if you are on the best interest rate in the world, a 4 year term will be charging so little interest.

There are lenders out there still doing interest only mortgages so you could move to one of them, you may find your lack of a concrete plan will stop you getting one though. A lot of lenders will exclude cash savings as you can just spend it on something else easily enough

antrobus

achilles1 wrote: »

....

You see I am currently on favorable terms, if I was to get another mortgage my monthly payments will definitely increase....

Your "favorable terms" will be gone when you current mortgage ends. There is no 'if' about it.:)

achilles1 wrote: »

....
If I take it to the Ombudsman, do I stand a change of winning?

No, would be my view.