Can someone fully explain this.

triple-clones

I work with a guy, who is Australian, his wife is South African with dual UK citizenship.

October 2008 Nationwide gave him an "Agreement in Principal for a mortgage based on a 95% LTV.

OK now if you are a full UK citizen, then you have citizenship and where you were born is irrelevant - but at the time of offer he wasn't a full UK citizen.

He didn't have an "Indefinite Leave to Remain" visa and knowing this Nationwide wouldn't process his application until he did. Leaving it as an "Agreement in Principal".

He has just got this ILR Visa on 1st March 2009 and Nationwide have accepted him for a 95% LTV mortgage.

With all the recent press this seems very strange. I have also been to Nationwide recently who will only offer me a 90% LTV - even though I want to borrow slightly less, earn slightly more and both myself and my wife are full UK citizens, we have a house in mind, 6% of the value and no chain - we're first time buyers - so no hold ups.

BTW Nationwide would lend me over £240k, as it is I just want £162K

Surely if Nationwide can offer one person 95% LTV on the 1st March 2009 then Nationwide can offer everyone (who qualifies) a 95% LTV - and before everyone starts on with the "Agreement in Principal", is it not the case that these can be retracted very quickly without notice, as lots of people are reporting?

Oh and it is a standard variable rate mortgage and not a high fixed rate mortgage.

Writing this it is apparent that lenders make the rules up as they see fit at time of application - this being the case, whatever the government and the bank of england do will have no affect unless the lenders are willing for it to have an affect? So we are in the hands of the lenders completely.

Any thoughts, ideas or corrections?

Robert_Sterling_3

I do not do "fully"
The Nationwide gave someone an "Agreement in Principal" and they are sticking to it.
That is OK by me.
If I understood correctly they would also give you a mortgage.
That is also OK by me.

triple-clones

Robert_Sterling wrote: »

I do not do "fully"
The Nationwide gave someone an "Agreement in Principal" and they are sticking to it.
That is OK by me.
If I understood correctly they would also give you a mortgage.
That is also OK by me.

Yes they will offer me one - although I need a greater deposit and I would have to pay a higher rate of interest fixed. But I want to borrow less, my wage to loan ratio is less, same style of houses within 10 miles of each other on south coast.

I thought a lot of people were complaining that lenders weren't standing by "Agreements in Principal".

And I main point is why are the lenders now saying 10% deposit minimum when really they are happy to work with 5% deposits?

Robert_Sterling_3

triple-clones wrote: »

And I main point is why are the lenders now saying 10% deposit minimum when really they are happy to work with 5% deposits?

I do not know why they are doing that.

Conrad

As far as I'm aware 95% is only for existing Nationwide borrowers moving home.

My guess is he's telling porkies - people do all the time so I'm not surprised. Often people tell me thier freind got some fantasy mortgage deal, and over the years I've come to realise some people just love exagerating. Another example are brokers that tell me they are always booming yet later I find out theyve gone bust.