Nationwide mortgage reserved and extended question

dkennedy1001

Hi All,

I have just come back from Nationwide after trying to get a mortgage I had reserved and extended. Here is my situation, back in October I managed to get one of the last 95% tracker mortgages which is 1.5% above base. The day it was just about to expire I went into Nationwide with a potential house I wanted to buy. I then got my reserved mortgage extended a further 3 months to give me a bit more time but unfortunately that house fell through.

I now have had an offer on a house accepted based on a 95% mortgage and went in today to take it up. Unfortunately the computer wouldn't accept a 95% mortgage due to them being withdrawn but the mortgage advisor said she would put it through manually with head office!

Just wondering what you guys think the odds are of this going through as very nervous about it?

I'm in IT and my girlfriends a solicitor but don't know if our good salarys will make much difference!

uzubairu

What's the size of the mortgage?

With good salaries (your words) why have you not saved up a bigger deposit?

You may find that the best rates won't be available to people with high LTV and the possibility of negative equity.

I hope it works out for you.

dkennedy1001

Thanks for the reply.

The mortgage is for 280k and we are in our mid twenties so a 10% deposit or 28K hasn't been achievable yet.

I just thought that having it reserved we would somehow be able to get the mortgage.

Anybody else out there with a mortgage deal reserved, have seen it withdrawn from the market but still managed to be able to proceed with it?

Thanks

luckyfool

To be honest I'm not sure if this will work. It may well do (if the branch advisor thinks it will go through based on a head office referral) so its worth a go. Make sure they confirm that it will have been signed off by the head office as approved before the valuation is carried out as you do not want to be out the valuation cost if they are unwilling to let it go through at 95%. I take it you are not buying a New Build as Nationwide are pretty much automatically downvaluing these by around 10% just now.

Nationwide are lending 95% to existing mortgage customers moving home just now, so its not as if it is that far fetched, my only concern is that the fact that you reserved it based on a property so long ago, and they have already extended it once (which they were under no obligation to do), if I was asked whether they would let you proceed my own inclination in isolation would be that it would be unlikely. The fact that a branch based advisor thinks its ok would suggest that you have a good chance. Did he or she say they had checked with head office and that it was ok but just needed to go through them? My only worry would be if they have just decided to fire it through and hope for the best (as the application might work towards their target even if it is later declined by head office).

Hope this helps,

Luckyfool

dkennedy1001

She hadn't run it past head office yet so was just sending it to them. Think she was goona put a letter with it too but you never know in these situations. She also said the valuation which is going ahead tomorrow would be refunded if the mortgage didn't go through. Let's hope that's true!

Thanks

luckyfool

dkennedy1001 wrote: »

She hadn't run it past head office yet so was just sending it to them. Think she was goona put a letter with it too but you never know in these situations. She also said the valuation which is going ahead tomorrow would be refunded if the mortgage didn't go through. Let's hope that's true!

Thanks

That's a new one on me. Nationwide have never been big on refunding valuation fees after the valuation has taken place.