No Nationwide repos for 12 months

[scb]

“and we have promised that no mortgage member will lose their home over the next 12 months due to the impact of the coronavirus.”
https://t.co/DJSzq5H5Wa

Does that mean all Nationwide mortgage holders get a 12 month payment holiday? Or will they just wait 12 months from now and repo the house even if you have sorted yourself out since then?

Surely if all banks maintain this position it’s not going to help with a price crash/correction as less people will be forced to sell.

[crazypabs]

Noooooooooooooooo

[Bluestone59]

16 minutes ago, scb said:

“and we have promised that no mortgage member will lose their home over the next 12 months due to the impact of the coronavirus.”
https://t.co/DJSzq5H5Wa

Does that mean all Nationwide mortgage holders get a 12 month payment holiday? Or will they just wait 12 months from now and repo the house even if you have sorted yourself out since then?

Surely if all banks maintain this position it’s not going to help with a price crash/correction as less people will be forced to sell.

What else did you expect?

So if I stop paying them and say it's the virus, will they check it out and how?  

And if I stop paying other than virus related will they then evict me, as they really should?

[Si1]

I do hope scum savers are forced to pay for this. Membership has benefits.

[spyguy]

39 minutes ago, scb said:

“and we have promised that no mortgage member will lose their home over the next 12 months due to the impact of the coronavirus.”
https://t.co/DJSzq5H5Wa

Does that mean all Nationwide mortgage holders get a 12 month payment holiday? Or will they just wait 12 months from now and repo the house even if you have sorted yourself out since then?

Surely if all banks maintain this position it’s not going to help with a price crash/correction as less people will be forced to sell.

It means NW repo team will be very busy next June.

 

[Locke]

If they sell the mortgage to someone else, then you are no longer a member :^)

[MARTINX9]

43 minutes ago, Si1 said:

I do hope scum savers are forced to pay for this. Membership has benefits.

Almost all Nationwide instant access savings and ISAs are now paying 0.01%. So if you invested £50,000 you would earn a grand total of £5 in interest a year. These rates are way below what several banks are paying.

So yes prudent mug savers are paying for over leveraged feckless borrowers including BTL landlords at NW.

So much for caring sharing mutuality!

Saver members outnumber mortgage  holders by 9 to 1 so they could use their voting power to vote out the board at the July AGM!

Edited May 29, 2020 by MARTINX9

[richmondtw]

Why would a lender want to own a depreciating asset.

It will be empty so a potential target for squatters and vandals, will need to be kept tidy if it is to be sold so costs for gardening, draining central heating etc.  Estate agents costs when sold , legal costs when sold.  The metal grills that are used to secure an empty property are supplied by security companies and are very expensive.  It will also use manpower within the lending organisation.  

1 hour ago, scb said:

Surely if all banks maintain this position it’s not going to help with a price crash/correction as less people will be forced to sell.

I would be surprised if they do not maintain this position.  
Of there is going to be mas unemployment it reduces the pool of potential purchasers which the lenders will be very well aware of. 

[First time on the ladder]

And again homeowners get their backsides wiped for them.

[Timm]

1 hour ago, scb said:

“and we have promised that no mortgage member will lose their home over the next 12 months due to the impact of the coronavirus.”
https://t.co/DJSzq5H5Wa

Does that mean all Nationwide mortgage holders get a 12 month payment holiday? Or will they just wait 12 months from now and repo the house even if you have sorted yourself out since then?

Surely if all banks maintain this position it’s not going to help with a price crash/correction as less people will be forced to sell.

It depends on individual circumstances, but whatever the package, it is just kicking the can down the road, not a free house.

From their website:

What impact will a payment holiday have on my future monthly payments?

A mortgage holiday is a temporary break from your mortgage payments, to help you through these uncertain times. 

However, because interest will continue to build during the payment holiday, when your payments start up again, your balance will be higher than if you’d continued to pay off your mortgage.

[spyguy]

24 minutes ago, MARTINX9 said:

Almost all Nationwide instant access savings and ISAs are now paying 0.01%. So if you invested £50,000 you would earn a grand total of £5 in interest a year. These rates are way below what several banks are paying.

So yes prudent mug savers are paying for over leveraged feckless borrowers including BTL landlords at NW.

So much for caring sharing mutuality!

Saver members outnumber mortgage  holders by 9 to 1 so they could use their voting power to vote out the board at the July AGM!

Maybe 9 to 1.

However I bet the average NW mortgage owes more cash than the average NW saver saves.

 

[regprentice]

1 hour ago, scb said:

“and we have promised that no mortgage member will lose their home over the next 12 months due to the impact of the coronavirus.”
https://t.co/DJSzq5H5Wa

Does that mean all Nationwide mortgage holders get a 12 month payment holiday? Or will they just wait 12 months from now and repo the house even if you have sorted yourself out since then? 

My understanding is a repo takes a minimum of 5 months, but up to 12 months. 

There are two govt mandated mortgage holidays of 6 months you can have. If they started repo proceedings at the 6 month mark they probably still wouldn't break their promise, that no one would lose their homes in 12 months. 

I'd Imagine at the end of the 6 months you put your hands up and say you can't afford the Mortagage, they then try and find you another product for a remortgage, or foreclose on you. You typically don't need to do much to remortgage with the same provider, for example prove your current wage, so it shouldn't be difficult for people to get at least one remortgage/restructure opportunity. 

I don't believe nationwide will repo the house if you are back on track and repaying in 12 months. 

As I've said before the banks and building society's will keep people on the hook for their debt, next up their sleeves will be a free 10 year extension to their mortgage, or a guaranteed remortgage to an LTV of 125%, 150% or even 200%.

Edited May 29, 2020 by regprentice

[MARTINX9]

1 minute ago, spyguy said:

Maybe 9 to 1.

However I bet the average NW mortgage owes more cash than the average NW saver saves.

 

Oh I agree about the money side but they all have one vote each at the AGM.

Shame few will use the opportunity to vote down the board and their excessive remuneration packages in July. Savers are being mugged at NW and they have 9 times as many votes!

[richmondtw]

23 minutes ago, First time on the ladder said:

And again homeowners get their backsides wiped for them.

You have the option top join them if you want to

 

4 minutes ago, regprentice said:

I don't believe nationwide will repo the house if you are back on track and repaying in 12 months. 

As I've said before the banks and building society's will keep people on the hook for their debt,

I agree - the lenders would rather have a delay in receiving payment than have the hassle of owning a load of empty houses that they have to maintain and monitor.

6 minutes ago, regprentice said:

next up their sleeves will be a free 10 year extension to their mortgage, or a guaranteed remortgage to an LTV of 125%, 150% or even 200%.

no that will not happen

[MarkD]

In the late 80's interest rates went up to 15%, and it was an instant game over. Repossessions all over the show. With rates at practically zero this time it's a whole different ball game. If Mr and Mrs Smith miss a repayment or two the banks probably won't even notice! I've got a growing feeling the downside is going to be limited this time. The banks are far better equipped at keeping the plates spinning as demonstrated by the 2008 crash. So much for free market economics!

[captainb]

1 minute ago, MarkD said:

In the late 80's interest rates went up to 15%, and it was an instant game over. Repossessions all over the show. With rates at practically zero this time it's a whole different ball game. If Mr and Mrs Smith miss a repayment or two the banks probably won't even notice! I've got a growing feeling the downside is going to be limited this time. The banks are far better equipped at keeping the plates spinning as demonstrated by the 2008 crash. So much for free market economics!

The banks will notice. Mr and Mrs Smith have however been told then can miss 6 payments if they just ask.

[MarkD]

2 minutes ago, captainb said:

The banks will notice. Mr and Mrs Smith have however been told then can miss 6 payments if they just ask.

They'll have to pay it back that's for sure. But repossessions? I doubt it. The auctions have been quiet for years, very little stock aside from unmortgageable and undesireable. I would love to be wrong!

[Locke]

13 minutes ago, MarkD said:

In the late 80's interest rates went up to 15%, and it was an instant game over. Repossessions all over the show. With rates at practically zero this time it's a whole different ball game.

are you misremembering?

https://www.mortgagestrategy.co.uk/analysis/historical-interest-rates-uk/

[sammersmith]

1 hour ago, MARTINX9 said:

Almost all Nationwide instant access savings and ISAs are now paying 0.01%. So if you invested £50,000 you would earn a grand total of £5 in interest a year. These rates are way below what several banks are paying.

So yes prudent mug savers are paying for over leveraged feckless borrowers including BTL landlords at NW.

So much for caring sharing mutuality!

Saver members outnumber mortgage  holders by 9 to 1 so they could use their voting power to vote out the board at the July AGM!

Last month my Nationwide cash ISA went from 1.4% to 0.35%. My Nationwide Help to Buy ISA went from 2.5% to 1% and my daughter's Nationwide future saver went from 3% to 1%. I've now cashed anything sub 1% out of Nationwide and looking very carefully at what to do with anything left there earning 1%. 

Blessing in disguise really as i was concerned about getting near to the FSCO limit. Not a problem now but those annoying Nationwide commercials are still infuriating. 

Edited May 29, 2020 by sammersmith

[Clarky Cat]

"no mortgage member will lose their home"

Note that's their home, rather than their house. Could be taken as saying homeowners protected, but BTL not.

[TheCountOfNowhere]

THEY WILL STOP AT NOTHING.

They will not repo. They will not allow houses to fall to fair value.  If they do, they are bankrupt.

This is fraud, a crime.  These ****s should be jailed.

I expect they think it'll all be hunky dory in a year and they can continue as normal with the plates still spinning.

This is like the NR all over again.  The NW could fail IMHO

[regprentice]

29 minutes ago, richmondtw said:

No that will not happen

You don't think so? I worked for ulster Bank. In 2008 and then many of the Irish banks issued 200% mortgages as the property market fell 50%.

According to this link virgin are already offering 200% ltv mortgages and a few banks, including tsb, are offering 120% ltv as a remortgage - in effect keeping you on the hook for your debt despite owing more than your house is worth. 

And I can find references to 200% Ltv on other websites

http://www.whistletree.co.uk/mortgages/switching-your-mortgage-to-a-new-rate

Rates are available on secured loans up to 200% of your home's value

Edited May 29, 2020 by regprentice

[TheCountOfNowhere]

2 minutes ago, regprentice said:

You don't think so? I worked for ulster Bank. In 2008 and then many of the Irish banks issued 200% mortgages as the property market fell 50%.

According to this link virgin are already offering 200% ltv mortgages and a few banks, including tsb, are offering 120% ltv as a remortgage - in effect keeping you on the hook for your debt despite owing more than your house is worth. 

And I can find references to 200% Ltv on other websites

http://www.whistletree.co.uk/mortgages/switching-your-mortgage-to-a-new-rate

Rates are available on secured loans up to 200% of your home's value

Are you making that up the Virgin one I mean ?

[TheCountOfNowhere]

4 minutes ago, Clarky Cat said:

"no mortgage member will lose their home"

Note that's their home, rather than their house. Could be taken as saying homeowners protected, but BTL not.

It's not their ****ing home till they've paid the savers for it.

[regprentice]

1 minute ago, TheCountOfNowhere said:

Are you making that up the Virgin one I mean ?

Follow the link.

I've never seen a 200% ltv mortgage in the UK before but I worked with them In Ireland. I've no idea whether that is a common virgin product or a very specific specialised product but it doesn't appear to be from the description and it just came up on a standard search on money.co.uk