Nationwide Building Society rolls out second mortgage payment breaks

Jessica Bird

June 18, 2020

Nationwide Building Society commission income

Nationwide Building Society has rolled out additional mortgage payment breaks for those still facing financial difficulties due to COVID-19.

Nationwide is offering new three-month mortgage payment breaks as well as providing the option to make partial payments towards a mortgage.

The payment breaks come as part of Nationwide’s Home Support Package, which it announced in May.

Members financially impacted as a result of the outbreak will be taken through an online journey to select and self-serve from a range of options relevant to their own situation.

Those requiring further support will be able to speak to someone who can support them through the process and assess their individual needs.

Members already receiving payment support will be contacted prior to it ending and directed online if they require further support.

All payment breaks will continue to accrue interest; however, in line with guidance from the Financial Conduct Authority (FCA), these will not be reported on members’ credit files.

Everyone applying for further mortgage support will be directed to a payment calculator to ensure that they are able to assess the future impact of payment breaks before proceeding.

In addition, no Nationwide mortgage member falling into arrears as a result of COVID-19 will lose their home until the end of May 2021, provided they work with the society to get their finances back on track.

Additional measures coming before the end of June include extending mortgage payment breaks to the society’s buy-to-let (BTL) landlords.

The society is encouraging landlords to apply for the breaks if their tenants are struggling to pay rent due to COVID-19, and where possible to pass on the benefit.

Nationwide is also enhancing the support it provides charity partner Shelter.

Additional funding has been provided to allow for more advisers for Shelter’s Helpline and HelplinePlus services, providing specialist advice to those with housing, debt and welfare issues.

The society is has also supported the introduction of new Shelter community engagement officers to help those struggling to access support.

Henry Jordan, director of mortgages at Nationwide, said: “Many people are still experiencing financial difficulties as a result of the outbreak and we want to support where we can.

“While we would always encourage people to pay what they can, there are cases where this is just not possible.

“For those who continue to be financially impacted as a result of COVID-19, we are here to support them.

“Our Home Support Package is designed to help our members keep their homes.

“The unknown timeframe of how long this impact will last has led us to halting repossessions linked to COVID-19 until the end of May 2021 to give our members as much reassurance as we can.

“All that we ask is that our members continue to engage with us so that we can agree with them the best way to help them.”

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