The Society is offering extended support for people still financially impacted by the outbreak and who may be coming to the end of an initial three-month mortgage payment support period, which begin to expire next month.
Nationwide has put in place a range of options to help prevent those still impacted from falling into significant difficulties, whether homeowners or renters, which will be available from mid-June. In addition to three-month payment breaks for both residential and Buy-to-Let mortgages, the Society is also enabling partial payments such as temporary interest-only arrangements. In addition, no Nationwide mortgage member falling into arrears as a result of Covid-19 will lose their home in the next 12 months - until the end of May 2021 - as long as they work with the Society to get their finances back on track.
The package, which builds on the Society’s earlier payment support, comes at a critical time and shows that like all building societies, Nationwide is fully focussed on helping keep people in their homes at this time. National YouGov research commissioned by Nationwide shows 21% of homeowners are worried they will not be able to keep paying their mortgage, while 14% fear they will lose their home. Worries are even higher for renters, with 27% concerned that they won’t be able to meet their rent payments, while 18% worry that they’ll lose their home. 73% of people are worried that there will be a recession.
Joe Garner, Nationwide’s Chief Executive, said: “There is a real need to reassure people, particularly those on mortgage payment breaks who are worried what will happen next. At a time when people are concerned about their jobs, bills and health, we want to do everything possible to ensure they don’t worry about having a roof over their heads. As a mutual, founded to help people into a home of their own, this is what building societies have always been about. We hope this additional support will provide extra flexibility to those who most need it, to help get them back on track.”
Nationwide is also asking the government to consider changes to the way housing support is provided, asking that Local Housing Allowance covers the 50th percentile of rents in any given area rather than the current 30th percentile, something Shelter and the Money Advice Trust have also called for, while also working with government and other organisations to establish a more consistent and customer-focussed approach to debt collection and recoveries.
