27 March 2020
- Measures aimed at ensuring progress on existing Nationwide and TMW applications
- Covers existing new home purchase, remortgage or additional borrowing applications
- Nationwide and TMW to allow three month mortgage offer extensions on case-by-case basis
- Customers should only request an extension within 30 days of offer expiring
- Valuations to continue using automated valuation model and remote desktop where possible
Given latest government advice, Nationwide Building Society, the UK’s second largest mortgage lender, is today announcing enhanced measures to ensure existing mortgage applications can continue to be progressed. These measures will also apply to the Society’s buy-to-let arm, The Mortgage Works (TMW).
Extending mortgage offers
If a customer’s mortgage offer is within 30 days of expiry and needs an extension due to the current uncertainty, Nationwide will extend it by three months. These extensions will be assessed on a case-by-case basis and after confirming there are no other material changes to the customer’s situation.
Customers should only request an extension within 30 days of expiry. They can do that by contacting their mortgage advisor or by going via the coronavirus support pages on Nationwide and TMW’s websites. This is to ensure that the most urgent cases can be dealt with efficiently given the high volume of requests for support that the Society is currently receiving.
As a result of the latest government advice, valuers are currently unable to carry out physical mortgage valuations. Nationwide and TMW are, therefore, using alternative methods, such as via automated valuation model (AVM) and remote desktop, to carry out as many valuations as possible and ensure ongoing applications can continue to be progressed.
If a valuation cannot be completed via either of these alternative methods, Nationwide and TMW will contact either the customer or broker to confirm that the valuation has been placed on hold until government advice allows physical valuations to be resumed.
Henry Jordan, Nationwide’s Director of Mortgages, said: “We understand how much stress and uncertainty those either moving to a new house or into their first home are currently facing, especially if they encounter an unexpected delay.
“As the UK’s second largest mortgage lender, we continue to work hard with our valuation and conveyancing partners to progress all ongoing applications as quickly as possible. With this latest announcement, we hope to provide reassurance to homebuyers that they will not lose out if there is a delay in their house move because of the impact of coronavirus.
“We continue to monitor for any updates to government advice and, in this ever evolving situation, while we continue to progress applications, we ask members and brokers to bear with us and thank them for their patience during these unprecedented times.”
David Hollingworth from L&C Mortgages said: “At a time when homebuyers and mortgage borrowers are facing significant uncertainty it’s extremely encouraging to see a lender adapting so quickly to a fast moving situation to come up with practical solutions. Heading off worries with a clear approach to offer extensions and keeping the market moving by addressing the practical limitation of physical valuations will really help support customers during testing times.”