Nationwide Loan on Mortgage Calculator ' Not Fit for Purpose ' !
pontiac_custom_catalina
Posts: 4 Newbie
in Loans
Earlier this year I changed my Nationwide mortgage product to another of theirs and saved £114 per month by switching.
Now planning some home improvements, so I rang Nationwide to borrow £18,000 over the remaining 18 years of mortgage which would equate to less than £100 per month - less than my mortgage before - and I failed the affordability test !
I have a 100% payment record, was paying it comfortably before the reduction and nothing else has changed. Nationwide could offer no explanation other than ' computer says no ! '
Now planning some home improvements, so I rang Nationwide to borrow £18,000 over the remaining 18 years of mortgage which would equate to less than £100 per month - less than my mortgage before - and I failed the affordability test !
I have a 100% payment record, was paying it comfortably before the reduction and nothing else has changed. Nationwide could offer no explanation other than ' computer says no ! '
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Comments
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Affordability measures have changed in recent years. Lenders are not as loose with borrowing as previously.0
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pontiac_custom_catalina wrote: »Earlier this year I changed my Nationwide mortgage product to another of theirs and saved £114 per month by switching.
Now planning some home improvements, so I rang Nationwide to borrow £18,000 over the remaining 18 years of mortgage which would equate to less than £100 per month - less than my mortgage before - and I failed the affordability test !
I have a 100% payment record, was paying it comfortably before the reduction and nothing else has changed. Nationwide could offer no explanation other than ' computer says no ! '
Not fit for purpose is indeed the correct way to describe the current situation regarding so-called "affordability". At least, it would appear so from what we read here and in the press. Nationwide's computer system - or the people who designed the application - appear to be particularly stupid.0 -
Not fit for purpose is indeed the correct way to describe the current situation regarding so-called "affordability". At least, it would appear so from what we read here and in the press. Nationwide's computer system - or the people who designed the application - appear to be particularly stupid.
Well, given the Nationwide didn't collapse or require taxpayer bailout after the financial crisis of 2008, nor has it gone out of business in the years since because it's too tight with its money, they can't be that stupid.
The OP's remortgaged once recently. He's now looking to do so again, and borrow another £18k - if he's such a good financial prospect he wouldn't need to resort to secured borrowing over such an extended period of time to be able to get hold of this sort of sum. Yes, this may be the actions of someone looking to save as much interest as they can. It could also be the actions of someone who's up to their neck in it and is looking for a consolidation loan by any means possible.0 -
ReadingTim wrote: »Well, given the Nationwide didn't collapse or require taxpayer bailout after the financial crisis of 2008, nor has it gone out of business in the years since because it's too tight with its money, they can't be that stupid.
The OP's remortgaged once recently. He's now looking to do so again, and borrow another £18k - if he's such a good financial prospect he wouldn't need to resort to secured borrowing over such an extended period of time to be able to get hold of this sort of sum. Yes, this may be the actions of someone looking to save as much interest as they can. It could also be the actions of someone who's up to their neck in it and is looking for a consolidation loan by any means possible.
Missing the point completely.0 -
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GingerBob what is wrong with the way that Nationwide, or any other mortgage lender for that matter, decide upon the affordability for potential borrowers? Lenders were a bit too free and easy with mortgage lending pre-2008 (and there were some very stupid borrowers taking silly risks) and look how that ended up.
Mortgage Market Review rules were introduced in April 2014 so now lenders have to ensure that borrowers can afford the mortgage in all circumstances such as if interest rates were 7%. That's quite possibly why the OP cannot borrow the additional £18k.0 -
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GingerBob what is wrong with the way that Nationwide, or any other mortgage lender for that matter, decide upon the affordability for potential borrowers? Lenders were a bit too free and easy with mortgage lending pre-2008 (and there were some very stupid borrowers taking silly risks) and look how that ended up.
Mortgage Market Review rules were introduced in April 2014 so now lenders have to ensure that borrowers can afford the mortgage in all circumstances such as if interest rates were 7%. That's quite possibly why the OP cannot borrow the additional £18k.
Common sense no longer prevails in some cases (like this one). That is the problem. We hear all the time of mortgage providers refusing a new deal on the grounds of affordability even when it would result in lower payments. Plain stupidity and incompetence on the part of the lenders.0 -
Hi,
if you can only afford £100 a month, which is what the 18 years to pay it back implies, then you would be unaffordable if there were an interest rate rise.
Can you afford a higher repayment and a shorter term? An unsecured loan with a different lender may then be an option.2021 GC £1365.71/ £24000 -
As I said, I was paying the higher amount off comfortably and no, I'm not in debt up to the eyeballs.......quite the opposite as I'm old school and don't even have a credit card ! Luckily the mortgage is the only loan / debt I have. What irks me is that no one at Nationwide can offer an explanation as to why ? Is the ' affordability calculator ' some kind of secret ? I'd just like to know the reason !!0
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