Trying to downsize but Nationwide won't lend us less money!

tinkerbell12

Thank you for all your replies.

I did actually make a mistake in my initial figures. Our current LTV is 88% not 95% as I said earlier. We would have 95% LTV in the new home, hence I can see where the problem lies with them.

We can afford to move if only putting down 5% desposit - have moved twice before so aware of the fees etc for this.

I think as some of you already mentioned,their main issue was the credit check. As soon as we failed that, it was a case of tough!!

I have been in touch with the 'bad credit' people at Charcol today who offer a free service to people like us. They were really helpful but it does look as though we either:

Stay where we are and put up with it OR
Rent as someone else suggested.

The cost of moving to another lender just won't make sense when we are currently on such a good deal.

My only concern now is in 3 years time when our fixed rate is up, will they be prepared to offer us another fixed rate deal or make us sit on Basic Rate? (which may cost ALOT more!)

Tiddler_2

If your deal was ending now, they would offer another deal, as they don't do a credit check on product transfers, as far as I am aware (they don't do product transfers via brokers).
However, with the year we've just had in the mortgage market it is impossible to predict what will be available in 3 years time

iwannavr

Nationwide dont do checks on product switches, no lender does as far as i know and im a complaint handler for a lender. Nationwide do lend to other categories of people with bad credit, my other half for example had 4 CCJ's when she got her mortgage, now however it may be a different story.

My opinion would be to get your credit file and settle any oustanding debts or CCJs etc if there are any, however if its the DMP thats stopping it, youre snookered.

As for people trying to tell you why your application failed, i think it would be best to ignore them because the only people who can tell you why its failed is the lender themselves, and they WILL tell you, specifically if you make the request, if not then place a complaint, who knows you may get further if you mention three letters... TCF. This may work if you are downsizing and increasing the security in your home, but as always, no guarantees.

Ian_Griffiths_Halifax

iwannavr wrote: »

As for people trying to tell you why your application failed, i think it would be best to ignore them because the only people who can tell you why its failed is the lender themselves, and they WILL tell you, specifically if you make the request, if not then place a complaint, who knows you may get further if you mention three letters... TCF. This may work if you are downsizing and increasing the security in your home, but as always, no guarantees.

Are you sure about that. Won't they just say it doesn't fit their criteria or meet their credit score and refer them to the Credit Reference Agency they use?

tinkerbell12

iwannavr wrote: »

Nationwide dont do checks on product switches, no lender does as far as i know and im a complaint handler for a lender. Nationwide do lend to other categories of people with bad credit, my other half for example had 4 CCJ's when she got her mortgage, now however it may be a different story.

My opinion would be to get your credit file and settle any oustanding debts or CCJs etc if there are any, however if its the DMP thats stopping it, youre snookered.

As for people trying to tell you why your application failed, i think it would be best to ignore them because the only people who can tell you why its failed is the lender themselves, and they WILL tell you, specifically if you make the request, if not then place a complaint, who knows you may get further if you mention three letters... TCF. This may work if you are downsizing and increasing the security in your home, but as always, no guarantees.

Thanks for this - we do not have any CCJs and i have obtained both mine and DHs credit file from Experian and mine is excellent and his is classed as fair/good. I think it is purely down to the fact we are on a DMP that failed the check. It is noted next to all our creditors that we are in a arrangement though so that must have rung alarm bells with them.

When she put us through the credit check over the phone she just said to us, basically Nationwide are declining you as a result of the credit check and it is a flat decline, not even a referral (i.e. we send them more info for proof.) We have written to underwriters and they also declined it.

I think I will have one last shot by writing to them asking for more details as to why they declined us. It's worth a go!

Can I ask what TCF stands for??

_Andy_

TCF = Treating Customers Fairly.

getmore4less

tinkerbell12 wrote: »

Thank you for all your replies.

I did actually make a mistake in my initial figures. Our current LTV is 88% not 95% as I said earlier. We would have 95% LTV in the new home, hence I can see where the problem lies with them.

We can afford to move if only putting down 5% desposit - have moved twice before so aware of the fees etc for this.

That should give you around £27k equity go to 90%(£18k) on the new place an that still leaves £9k to move which should be plenty.