Our Home Support Hub – here to help
If you have clients with a Nationwide mortgage, and they’re experiencing financial difficulty, our online Home Support Hub on nationwide.co.uk will help them get the ongoing support they need quickly and easily.
A reminder of our Home Support Package
The package includes:
- Either flexibility in the way the mortgage is repaid, or
- The option to extend a mortgage payment break.
- We will not take any action to repossess their home until 31 May 2021 if they’ve fallen into arrears because of the financial impact of coronavirus.
- We’ll encourage landlords to pass on payment breaks to their tenants.
- We’ll provide more housing advice and support.
What is it?
- An underpayment enables your client to pay less than their required monthly mortgage payment. This is only possible if overpayments have been made in the past.
How can my client use their overpayment reserve to underpay?
- Any overpayments made within a mortgage’s overpayment allowance will contribute to and build up an overpayment reserve. So, if flexibility is required with monthly payments for a few months, the overpayment reserve could allow ‘underpayment’ on future monthly mortgage payments (reducing the overpayment reserve).
Your client can choose to switch to a new deal with no early repayment charge (ERC) if:
- Their current deal is ending* and they’re five months or less from the end of their Nationwide deal
- They’re on our Base Mortgage Rate (BMR) or Standard Mortgage Rate (SMR)
- They’re on a tracker mortgage.
*the earliest start date will be three months before the current product expires.
Mortgage payment break extension
As of 1 April 2021, we are no longer accepting new applications for mortgage payment breaks.
However, if your client is already on a payment break and needs more support, they can apply for an extension up to 31 July 2021.
Please visit the payment breaks page on nationwide.co.uk to see how your client can apply for an extension.
Changing the mortgage term
Your client can apply to extend or reduce their mortgage term at any time, provided they meet eligibility criteria. Your client needs to request a change online - we may carry out affordability assessments as part of the application, depending on whether they’re applying to reduce or extend the term, and their proposed retirement age.
They can’t change the mortgage term if:
- The property is currently being let
- Any part of the mortgage is interest-only
- There are more than one month of arrears on the mortgage
- Anyone on the mortgage has been declared bankrupt and has not been discharged
- There's a guarantor on the mortgage
- The mortgage account you'd like to change was taken out before 31 October 2004, as it may be regulated by the Consumer Credit Act
- It is one of our Later Life mortgages.
Your client needs to know:
- Extending the mortgage term means smaller payments each month, but the overall amount of interest repaid will be more.
- Reducing the mortgage term means higher payments each month, but the overall amount of interest repaid will be less.
Use our mortgage payment calculator to estimate how a change could affect the amount paid each month.
What information will they need to hand?
Your client will need their mortgage account number, and details about their income and outgoings. Please see the below table for more information:
|Income||What your client can include|
|Household income||Their salary or wages, including self-employed earnings|
|Their partner’s salary or wages, including self-employed earnings|
|Other income||State benefits (e.g. universal credit, jobseeker’s allowance, income support, working tax credit, child tax credit, child benefit, employment allowance, statuary sick pay, disability benefits, carer’s allowance, housing benefit and council tax support)
|Pensions (e.g. state or private pensions, pension credit and other pension income)|
|Maintenance or child support|
|Boarder or lodgers
|Student loans and grants|
|Priority outgoings||What your client can include|
|Their Nationwide mortgage||Their Nationwide mortgage|
|Other priority debt
||Overdue mortgage and rent payments
|Ground rent / service charges
|Overdue council tax payments|
|Overdue gas / electricity payments|
|Secured loans (e.g. home loans and secured vehicle loans)|
|Furniture and appliance rentals|
|Essential spending||Utility bills (e.g. gas, electricity and water)
|Food (e.g. groceries, school meals and alcohol)|
|Prescriptions and medicine|
|Health costs (e.g. dentists and opticians)|
|School costs (e.g. uniform and after-school clubs)|
|Pension and insurance payments|
|Work-related costs (e.g. uniform or professional fees)|
|Magistrates’ court or sheriff court fines|
|Money towards annual tax bill (self-employed only)|
|Non- essential spending||Phone and internet|
|TV subscriptions (e.g. Netflix)|
|Leisure and sport (e.g. socialising, eating out, trips, clubs and leisure courses)|
|Clothing and footwear|
|Personal costs (e.g. hairdressers and toiletries)|
|Gifts (e.g. birthdays, pocket money and charity donations)|
|Newspaper and magazines|
|Stationery and postage costs|
|Vet bills and pet insurance|
|House repairs and maintenance
|Non-priority outgoings||What your client can include|
|Non-priority debt||Bank overdraft fees / charges
|Other unsecured debts|
Whatever happens, don’t forget…
If you have a client who has fallen into arrears because of the financial impact of coronavirus, and so long as they stay in touch and keep working with us to help get their mortgage back on track, we'll not take any action to repossess their home until 31 May 2021. By which time we sincerely hope their circumstances will have changed.