AIP rejected - any ideas?

HJH07

We had an AIP from Nationwide for £143K. The offer for the house has been accepted at £222K, we are able to put down the balance therefore LTV is approx 60%. We have just been told (after 3 weeks of waiting for their decision) that their criteria has changed and they can only lend us £60K. The valuation for the house came back fine - it is in good nick, in a good area and no work needs doing. We can't get to the bottom of which criteria change has resulted in an offer of less than half the AIP.
Needless to say we are reeling. Our broker has put another application into the Abbey who were our previous lenders but in the meantime has any one got any other ideas?
We earn £27K pa and have an A1 credit score and no other debts. We were hoping to get an interest only mortgage for a 30 year term as our financial situation is set to improve over the next few years. My husband is at the lowest grade in his job with plenty of scope for promotion, he is also a key worker with a secure job. I am about to return to work following maternity leave so we are comfortable making interest only payments with a view to reviewing the situation in 2 years time.
Any input/ideas welcome!

herbiesjp

Is that £27k each?

Or £27k in total?

£143k mortgage against £222k property value is closer to 65% LTV

Toughluck

Abbey will not do a pure interest only mortgage if the loan to value is >50%. You will have to have in part/part. £111,000 on interest only and £32Kk on repayment. They use a weird system for split mortgages.

Nationwide reduced their income multiples down from 4.25x joint to 4.1x joint. I assume based on these multiples it is £27k each you earn as you would not have got a DIP from them at £143k on £27k joint earnings.

mic200202

Nationwide arent the easiest lender to deal with when it comes to working through their criteria.They have reduced their income multiples downwards a few weeks ago.In your case, I would guess they are working on just one income for some reason.They may also reduce the borrowing figure if there are going to be outstanding loans or credit continuing after the new mortgage has started.An AIP with them isn't binding - just an indicative figure which may change when they get the full app in. The amount of difference from the AIP is substantial, so I would suggest your broker should be able to give you a full explanation of what has happened.