what can we do now???

mummytwinton

as you know we applied for a nationwide mortgage but have heard today that we have been turned down. she wouldn't say why???


we have a virgin one mortgage of 98k but can go up to 100k.
we have income of 40k min hubby's second job can be a little more than this.

when we applied the lady said we didn't need to show hubby's 2nd job as my wages & his main job wages covered the 98k we wanted. we had 20k sitting on credit card which i added back to the mortgage so from last week the only money we owe was the 98k on the mortgage.


if i try to go to someone else will i have to say we got turned down?? & will this stop anyone else lending us a mortgage.

we don't understand why as we have never been late with anything & have always paid bills in full credit cards only have money on while 0% when that runs out we have paid them off.

should we close all credit cards so it doesn't look like we have them ????

i really feel p***ed off now as % rates are going up

dunstonh

Go to an independent mortgage broker. They are far more experienced than most bank/building society mortgage lenders plus they have whole of market availability. Once aware of your position, they will soon tell you if you are good for a mortgage or not.

Menna

I am really sorry to hear your news. I dont know why they turned you down, but it could be something as simple as the fact they did a credit search twice on you within such a short timespan. Your credit cards, as long as they are not bad, which if youve been making regular payment shouldnt be, shouldnt make a difference to your mortgage app.

I agree with the above, you should go to a WOM mortgage advisor who should be able to dip your case with a couple of likely lenders without leaving a footprint. All that means is they'll be a able to get some decisions in principles from lenders for you without a mark being left on your credit file. Let me know if you need some more help, but I feel it is time to get the experts in now, and get this sorted out.

mummytwinton

thanks for the advice, the virgin one have offered us 4.99 for a year to keep us. i think i might do that for now & save the cost of moving mortgages would you say that is a good idea or are mortgages going to go up more & more this year so should i change now.
Cheltenham & gloucester do a 5year at 4.79 % but i can't see if you can make over payments

Menna

C&G are doing a 4.54 at the mo as well, but it comes with a 699 arrangement fee, although I dont know if that is a rate for us IFAs or a rate available to all clients...It's a difficult thing to say which way rates will go, but likelihood is up...Having said that, if they go up susbtantially and you've only secured a rate for a futher yr, you could find yourself in a way worse situation by next year. C&G do normally allow you to make overpayments of up to £250 per month. This may have changed, I'd give them a tinkle and check if I were you

I just checked for and C&G say on Trigold;


You can repay up to 10% of the loan’s balance per year during the early repayment charge period (using the balance
as at 1 January of the year in question) and Cheltenham & Gloucester will waive the charge. This waiver applies per
individual loan. So if your total mortgage is made up of more than one loan, each is treated separately and you can
make additional payments of no more than 10% on any individual loan which carries an early repayment charge
without the charge applying.

Hope thats of some use to you.

mummytwinton

when they say no more than 10% of loan is that pre month or pre year. i was hoping to have a mortgage where we could over pay by aboout 150 a month but not every month say like nothing in dec or when going on holiday.

Menna

its the total of overpayments worked out at the annual statement date. So annually you can pay no more than the 10%, so from that I'm reading that you could pay say on £100000, £10000 this year be that in a lump or drips and drabs...But I'm not an expert on overpayments, I cant imagine ever wanting to, I like to spend too much, life's too short to be mortgage free.

mummytwinton

i agree but we have twins so i would like to be mortgage free to help them one day get on the housing ladder.
i'm now looking at the alliance & leicester 5 year fixed 4.84% but it has so many charges i'm trying to weigh up if it will be worth us paying about £1300 to change to them

we are on 5.7% (£704)at the mo but could lower to 4.99% (£699)for a year with them.or pay £1300 to change to A& L but pay only 4.84%(£658)

it will take us 2 years to make the money back but then for the next 3 years we will be £50 a month better off

herbiesjp

C&G are pulling the rates on Wednesday.

mummytwinton

will we cause ourselves any problems if we start appling for a mortgage with another company so soon after nationwide said no????



anyone know if we should phone the nationwide back & complain & see if they will look at us again.
when i did it last week they didn't take hubby's 2nd job wages into account which is 10K a year they also had our details while we still had 20k on credit cards which have since been cleared so now all we have is a mortgage for the amount we are asking for

Joe_Bloggs

Ring up Nationwide and ask to speak to a manager. I assume you are in contact with a mortgage center. Ask to speak to the manager and put across your concerns. See if you can get your situation reviewed by underwriters if necessary. Often the front line staff do not have a clue as to what they are talking about. Take down names and telephone numbers and keep notes. Request clarification where you do not follow what has been said. Persistance is the key.
Try phoning after 10 am and before 12 am. Avoid hours 'around' lunch and evenings as they have probably have other things to.
J_B.