Nationwide have gone back on Interest only Mortgage agreement following my redundancy.

Amacs_2

I spoke to the Nationwide about 5 weeks ago, when I was told by work that my job may be made redundant. The outcome of the talk with a trauma team person was that I would agree to go onto an interest only mortgage for the time being, if the worst happened. This was a big relief to me. I have now been told that I have been given my 5 weeks notice from work, and my last working day is Sept 4th 2020. I rang the Nationwide again, and explained this to another woman, who was very, very unhelpful, bordering on downright rude. Her attitude was that 'we (Nationwide), DONT DO interest only mortgages. WE will decide how much you will pay us!!!'. I'm in a real panic now, as I do a very specialised job, and as I explained the the first guy 5 weeks ago, jobs are difficult to come by in my line of work.

I did wonder about cancelling my standing order and telling them that at present, I'm prepared to pay them interest only, but no more for now. If I did that, could they try to start reposession procedures on the house? I thought it was sorted for now and the other guy was happy I wanted to at least show willing and make the interest only payment, but this other woman has really pulled the rug out from under me.

The first guy said that because I was prepared to pay the interest, I was fulfilling my obligation in part, on my repayment mortgage, and was not falling into arrears where Nationwide were concerend.

Any help and advice will be much appreciated, as this has me so stressed now, its unreal.

Thanks.

[Deleted User]

Whatever you do, don't cancel your payments unless you're happy to default on the mortgage.

If you can't make the full payments, talk to them about authorised arrears or another repayment plan. 

Amacs_2

Hello. I have already done that, as I said above, and we had, I thought reached an agreement. 

Thrugelmir

Did you speak to the "trauma team" the second time? The NW do not offer interest only mortgages. They will defer capital repayments for an agreed period of time though. 

Amacs_2

Hi. Yes, I rang the same number as the first time, and went through to the same department. I did ask for the guy I spoke to first, but the woman wasnt interested in transferring me. I did explain that I had discussed it about 5 weeks ago, but wasnt interested in any kind of agreement apart from her deciding how much I paid them.

[Deleted User]

Amacs_2 said:

Hello. I have already done that, as I said above, and we had, I thought reached an agreement. 

As I said, you need to do it again.

Thrugelmir

Amacs_2 said:

Hi. Yes, I rang the same number as the first time, and went through to the same department. I did ask for the guy I spoke to first, but the woman wasnt interested in transferring me. I did explain that I had discussed it about 5 weeks ago, but wasnt interested in any kind of agreement apart from her deciding how much I paid them.

Majority of NW staff are currently based at home. Transfering calls is therefore not possible. 

[Deleted User]

The first guy seems to have made a lot of promises that dont make sense:

1. by paying interest only and not the capital element you will definitely be going in to arrears.  The only difference is if it is authorised or not
2. They offer interest only mortgages to clients with an income of over £75k a year.   Otherwise they offer deferred payments, or authorised arrears etc.  
3.  Your obligation was to pay them the full monthly payment.  You cant part fulful this. Without an arragement in place you will go in to arrears even if you are £10 short.  It will destroy your credit report if you dont make an arrangement. 

Forgot about he 1st person.  Even forget about the 2nd person.   Call them again and ask what they can do to help.  They might not be able to do anything until you are actually in arrears.