Nationwide Mortgage - what information do they ask for usually?

Tizwas79

Hi,
We have recently sold and had a offer accepted on a newbuild. House we are selling is in partners name, we are buying together and porting mortgage to new property.

I have never had a mortgage, have had a loan and credit card, never had late payments always paid back etc. Same with partner so both our credit histories should be good.

I happened to get a pay rise (yey!) just after we sold so when we spoke to the broker I told them this. We are closish (within prob 15k of the max Nationwide will lend on our incomes) so thought this might help. However Nationwide now want 6months bank statements, letter from my work (unsuprisingly) and letter saying the small amount we have on cc's will be paid off this month (broker said the latter would help rather than Nationwide actually asking for it).

What I wondered is this normal because it's sent our alarm bells ringing. Also I have been in my overdraft although reducing significantly to now about £300 per month (no where near the limit but have gone from a rubbish job to a great one in a year so am still recovering) and was worried they would see this is bad??!!

Any info would be appreciated as to whether we should be worried or whether this is normal from Nationwide.

Thank you very much in advance!:D

Mrs_Bumble

Nationwide underwrite thoroughly so this is pretty normal for them. 6 months bank statement will be to see account conduct I suspect so as long as you not exceeded or right up to the limit each month wouldn't have thought that would be an issue.

As you say letter from employer confirming the pay rise is understandable.

If you have both good clean credit history etc I would try to relax!

I personally quite like Nationwide underwriting style and I have a good relationship with the team that process my applications you know where you are when they are thorough and the underwriters are usually understanding and approachable..

The one flag for me with Nationwide is that when they send the valuer out to value a newbuild they request that the value is the resell value and so this can sometimes cause issues and down-valuation, are you confident that you have negotiated the most keen price possible for the newbuild. Is it complete?

cymro

The Nationwide are being very thorough. I applied yesterday for 120K to put down another 120K on a 240K house. They wanted to know things like my childrens birth dates (they don't even live with me) and then turned me down this afternoon. So it is not you, it is the Nationwide.

Tom

Tizwas79

Mrs_Bumble wrote: »

Nationwide underwrite thoroughly so this is pretty normal for them. 6 months bank statement will be to see account conduct I suspect so as long as you not exceeded or right up to the limit each month wouldn't have thought that would be an issue.

As you say letter from employer confirming the pay rise is understandable.

If you have both good clean credit history etc I would try to relax!

I personally quite like Nationwide underwriting style and I have a good relationship with the team that process my applications you know where you are when they are thorough and the underwriters are usually understanding and approachable..

The one flag for me with Nationwide is that when they send the valuer out to value a newbuild they request that the value is the resell value and so this can sometimes cause issues and down-valuation, are you confident that you have negotiated the most keen price possible for the newbuild. Is it complete?

Thank you that's really helpful (and has put my mind to rest a bit!) With our bank accounts my partner has not been in his overdraft and I have reduced mine from £1000 (on a £1250 limit) to not more than £800 in the last six months and not more than £400 in the last month or so.

With the new build we are pretty confident we have got a good price as two three-four yr old houses of the same style (but semi-detached) are on the market for £10k and £20k more than what we have had accepted and ours is in a better location and detached. Fingers crossed Nationwide will agree with us!!!

Now they have all this how long will it take to hear back?

Thanks again for your reply.:D

Tizwas79

cymro wrote: »

The Nationwide are being very thorough. I applied yesterday for 120K to put down another 120K on a 240K house. They wanted to know things like my childrens birth dates (they don't even live with me) and then turned me down this afternoon. So it is not you, it is the Nationwide.

Tom

Thank you. I hope you manage to get what you need elsewhere?

Mrs_Bumble

To be fair if they have all the information they are normally pretty efficient, well my processing centre is! Have they instructed the valuation yet?

Tizwas79

Mrs_Bumble wrote: »

To be fair if they have all the information they are normally pretty efficient, well my processing centre is! Have they instructed the valuation yet?

No-we only gave our bank statements in today and my letter from work should be there tomorrow so hopefully that will be all of what they need!

Mrs_Bumble

Hope the valuation goes well! Good luck with the process.

jamesperrett

Tizwas79 wrote: »

T
With the new build we are pretty confident we have got a good price as two three-four yr old houses of the same style (but semi-detached) are on the market for £10k and £20k more than what we have had accepted and ours is in a better location and detached.

While this all sounds good, it is usually better to look at the Land Registry's sold prices rather than estate agents' asking prices as the sold prices are what a valuer will use. The Land Registry prices are available free from a number of different property related websites.

Cheers

James.