Mortgage allowed halved since DIP!

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Hi there - new to the forum but wondered if anyone could comment on my situation...

My broker had received a decision in principle from Nationwide for a three year fixed mortgage at 2.69% about three weeks ago - for £113,000. My salary is 29,000. I have a deposit of two thirds the value of the new house.

I go in today to finalise and am told that the maximum I can now borrow is now around £68 k !

I am a wee bit perplexed! I have no debts and assume a good credit rating! It's a drastic change - should I push my broker In case he has made a mistake or have the new new rules made such a difference?

Incidentaly, I have not been asked to answer that many questions regarding my outgoings at all.

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  • spidereyes
    spidereyes Posts: 257 Forumite
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    Skerrols wrote: »
    Hi there - new to the forum but wondered if anyone could comment on my situation...

    My broker had received a decision in principle from Nationwide for a three year fixed mortgage at 2.69% about three weeks ago - for £113,000. My salary is 29,000. I have a deposit of two thirds the value of the new house.

    I go in today to finalise and am told that the maximum I can now borrow is now around £68 k !

    I am a wee bit perplexed! I have no debts and assume a good credit rating! It's a drastic change - should I push my broker In case he has made a mistake or have the new new rules made such a difference?

    Incidentaly, I have not been asked to answer that many questions regarding my outgoings at all.

    I would have thought that it may be that you had the DIP just before the new MMR rules came into force. Some lenders who were not already compliant have had quite drastic changes in the amount that they are wiling to lender (nationwide I found to be one of them - the would only lend me and my partner £108k max whereas natwest would give us a max of £135k)

    I would get your broker to re-check the market under the new rules and see what's on offer.
  • Let_Us_See
    Let_Us_See Posts: 1,319 Forumite
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    If you are a single person and your financial situation has not changed since the original DIP, I would ask your broker some searching questions.
  • amnblog
    amnblog Posts: 12,462 Forumite
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    I may be that an outstanding debt has come up on your credit file which the lender has taken into account.

    As with many posters here - this is one for your broker to answer.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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