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Nationwide offers three-month credit card, loan and mortgage payment breaks

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26/03/2020
Nationwide Building Society has launched a package of support for those financially impacted by coronavirus.

The mutual has developed a coronavirus support page to make it as easy as possible for customers to arrange payment breaks, freeing up phone lines for the elderly and vulnerable.

Anyone who is, or anticipates, being in financial difficulty due to coronavirus such as from a loss of income or employment or struggling to pay bills can use the online service.

Customers will be given three-month payment breaks across credit card, personal loan and mortgage payments for both residential and buy-to-let home loans, in addition to an overdraft interest holiday until 1 July.

Once members have selected the payment holiday required, they’ll then need to fill out an online form. Nationwide confirmed the measures won’t impact a customer’s credit score although the interest will continue to accrue and will be factored into monthly payments after the payment-free period ends. However, overdrafts payment holidays will not carry the interest over.

Here’s what Nationwide is offering:

Credit cards

It will provide a grace period on card repayments for three months, starting from April. Monthly payments will be reduced to £1 a month in that time to help people in financial hardship due to coronavirus. Late payment fees will also be waived for anyone on a credit card payment holiday.

Credit card holidays will be notified in the member’s next statement, with the payment break starting from the following month.

Overdrafts

Nationwide will not charge overdraft interest from 20 April until 1 July for those financially impacted by coronavirus. Members can request a fee-free overdraft interest holiday by competing the online form, which will be available from Friday, March 27. Nationwide will email or text to acknowledge requests.

This means that financially impacted members will not pay any interest on their overdraft in the period – a move to ensure the hardest hit aren’t charged for borrowing more when they need it the most.

Personal loans

Like credit cards, Nationwide will provide a three-month grace period on card repayments, starting from April (form available online from Friday). Again, monthly payments will also be reduced to £1 a month to help people struggling financial as a result of coronavirus.

Personal loan holidays will start from the next payment due although if the Direct Debit is already in process the payment break will begin the following month.

Residential mortgages

Whether customers are in arrears or not, they will receive a three-month mortgage payment break if impacted by coronavirus. These will not be registered as arrears on credit files and will be offered until at least 30 April. The payment breaks can be applied for online with the Society aiming to respond to those applications within five to seven working days, although it may take longer given the high volume of request.

The mortgage payment holiday would take effect from when the following month’s mortgage payment is due. In the event a direct debit is already in progress, the break would take effect from the following month.

Buy-to-Let mortgages

Nationwide is supporting landlords and tenants financially impacted by coronavirus by extending mortgage payment holidays to include rental properties. These can be arranged via The Mortgage Works – Nationwide’s buy-to-let arm.

Sara Bennison, who oversees Nationwide’s products and propositions, said: “These are difficult and uncertain times and we want to do what we can to provide support for those who most need it. Our support package is aimed at providing short-term relief to those who have been financially affected by coronavirus and to ease their worries by giving greater reassurance.

“We have focussed on providing a simple online service which will not only help streamline applications but also free up our telephone lines for those who are unable to get online.

“As a mutual owned by our members, we have a responsibility to help those who require additional financial support. Never has that been truer than now.”

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