Overpayment reserve
If your client(s) make mortgage payments exceeding the contracted monthly amounts, these overpayments will form an 'Overpayment Reserve'. When keying a rate switch, the current mortgage balance will appear on the screen. Your client can then choose to (with prior permission from Nationwide) utilise this Overpayment Reserve to lower future monthly mortgage payments should they wish.
If your client has an overpayment reserve, please note this may be included in their overall mortgage balance when calculating their Loan to value (LTV). (This won't be included in rate switch applications).
For additional borrowing (further advance) applications the overpayment reserve will be included when calculating their LTV. If you would like to remove the overpayment reserve, please follow the overpayment reserve removal process.
Borrow back
If your client(s) took out their mortgage product deal with Nationwide on or before 29 April 2009, they will move/have moved to our Base Mortgage Rate (BMR) at the end of their deal. Your client will also have access to borrow back and payment holiday facilities. The BMR is guaranteed to be no more than 2% above the Bank of England base rate. If your client chooses to switch to a new mortgage product, they'll no longer have access to the BMR or its facilities and will revert to our Standard Mortgage Rate (SMR) which has no upper limit or cap.
If your client(s) took out their mortgage product deal with Nationwide on or before 3 March 2010, they will move/have moved to our Standard Mortgage Rate (SMR) at the end of their deal. Your client will also have access to borrow back and payment holiday facilities. Please be aware that if your client chooses to switch to a new mortgage product, they will no longer have access to these facilities.
If your client(s) took their mortgage out with Nationwide on or after 4 March 2010, they will move/have moved to our Standard Mortgage Rate (SMR) at the end of their deal. Your client will not have access to borrow back and payment holiday facilities.
Cheshire mortgage
If your client(s) took out their mortgage product deal with Cheshire on or before 14 June 2009, they will move/have moved to our Base Mortgage Rate (BMR) at the end of their deal. If your client(s) took out their mortgage product deal with Cheshire on or after 15 June 2009, they will move/have moved to our Standard Mortgage Rate (SMR) at the end of their deal. On both rates your client will have the ability to borrow back any overpayments they have made. Please be aware that if your client chooses to switch to a new mortgage product, they will no longer have access to these facilities.
Derbyshire mortgage
If your client(s) took out their mortgage product deal with Derbyshire on or before 30 May 2009, they will move/have moved to our Base Mortgage Rate (BMR) at the end of their deal. If your client(s) took out their mortgage product deal with Derbyshire on or after 31 May 2009, they will move to our Standard Mortgage Rate (SMR) when their deal ends. Your client will not have access to borrow back and payment holiday facilities.
Dunfermline mortgage
If your client(s) took out their mortgage product deal with Dunfermline, they will move/have moved to our Standard Mortgage Rate (SMR) when their deal ends. Your client will not have access to borrow back and payment holiday facilities.
Portman mortgage
If your client's current mortgage was taken out with Portman, they will move to our Base Mortgage Rate (BMR) when their deal ends. Your client will also have access to borrow back and payment holiday facilities. Please be aware that if your client chooses to switch to a new mortgage product, they will no longer have access to these facilities.
Payment holidays
Your client may be able to take a payment holiday if they took their mortgage out prior to 4 March 2010.
Your clients can apply to take a payment holiday of between 1 to 12 months and they must have a mortgage that is less than 80% of the value of their home at the end of the payment holiday.
More information for your client, including how to apply, is available on our customer website.
Payment difficulties
- If your client is experiencing difficulties in meeting their mortgage repayments then a payment holiday may not be appropriate
- Please ask them to contact us to discuss the options available to them:
Terms and conditions apply.