Nat West - extending max age but not for existing customers

Seasalt18

In the press release last Friday it said Nat West was extending the max age to 75 including existing customers. When I read it I was ecstatic because we got into covid mortgage arrears as not eligible for Govt help and Nat West could not extend the mortgage beyond 70 to reduce our payments  to help either.
I rang them hugely happy only to be told its only for brokers or I think they said organically grown customers not existing customers. Does anyone know if this is correct or can I  ask someone like Martin for help on it? 
The difference it would make to our situation is huge and the mortgage is our only credit problem. 

[Deleted User]

On your other post you say that 'most' of your mortgage is capital repayment.

The age extension isn't available to those with any part of their borrowing being interest only.

Seasalt18

It is completely a repayment mortgage . Sorry I wasn't clear -  I meant that  because it is over such a short period most of it is made up of capital and only a  small bit interest which means we still have being bringing the total mortgage amount owed down even though we have a payment short fall/arrears. I think it was something like £1100 capital and £165 interest.  

Seasalt18

Nat West have told me again not available to me and yet the article says 

"Customers applying to the bank via a mortgage broker, and existing customers switching products, are now able to apply for terms of up to 40 years, up from 35 previously.

In addition, the maximum age at repayment will be increased from 70 to 75 – though the borrower must still be working. "

Thrugelmir

Each application will be considered on it's merits. Where there's existing mortgage arrears and other financial issues then this will be factored into the underwriters decision. Simply extending the term may provide a short term answer but not the actual solution. Lenders are themselves accountable and hold a duty of care towards their customers. Deferring a debt well into retirement against a back drop of rising interest rates is why the lender remains cautious. 

Seasalt18

They are just saying it is not available full stop to any existing customers as of now. I can't see a logical reason for not extending our term.  I would be 67 at the end of it which would be retirement age. It was a suggested solution by FCA and I know people in our predicament  with different lenders getting extensions beyond 70 . 

      

getmore4less

Use a broker if that's what they are saying.

if part way through a product it may only be able to change at product switch time, that's how it reads 

Seasalt18

Thanks will look into that. 
Nat West have  categorically reassured me that if they did extend it to existing customers we could apply and it would only be a £35 charge.
It's just over the last two years we have frequently been given incorrect  information and it makes us worry. Customer service has gone down the pan a bit.( not just NW) 

ACG

I dont know the answer as we have not needed to look into it but going off your quote:

"Customers applying to the bank via a mortgage broker, and existing customers switching products, are now able to apply for terms of up to 40 years, up from 35 previously.

In addition, the maximum age at repayment will be increased from 70 to 75 – though the borrower must still be working. "

The bit in bold is key. If you are not switching products (and I dont think you can if you are in arrears, but I could be wrong) then you would not be eligible. 

I assume this is all to do with the money that they get in and then lend out, the end dates of those deals, how much they need to redeem etc. If everyone called up wanting to extend the term by 5 years, it might put them under pressure. Ultimately they only need to treat all similar customers equally. That means they can differentiate between new customers and old customers, customers in a deal and customers sat on the SVR etc. 

Seasalt18

Thanks I can see how they would affect their planning.
They have just today allowed us to switch off the SVR to a fixed product so that's good. 

Seasalt18

Whoops - that would affect their planning :- )