Nationwide IO mortgage / saving & investment plan

lowis

erm - what investment plans???? as yet i don't have any...

Joe_Bloggs

@Iowis
Do you have savings for a deposit. this could be considered an investment ,especially by a lender.
Then do you have further savings for mortgage fees, solicitors fees, survey fees, stamp duty etc.
The Nationwide are ultra fussy. I got turned down by them because of a non existant credit history. I had £40K in their savings accounts at the time. Why would I borrow money ? Check your own credit reports from Experian and Equifax as mistakes can appear on them and cut off your mortgage opportunities. You can put the situation right if you find out the facts first.
J_B.

lowis

as my flat is Right To Buy the discount counts as the deposit so I am borrowing 70% LTV - so no deposit required so i have just spent my savings paying off debts :-(

one question - the Nationwide have offered me the mortgage (subject to survey and that bloomin investment plan) and now require I pay the reservation fee to secure the mortgage. does this mean that in effect I have been accepted and they can't turn me down unless the survey deems my property to be unsuitable? sorry if this seems dumb - i've never done this before.

Joe_Bloggs

Congratulations at paying off your debts. Why do you have to buy now when you have no savings ? If you paid your fee you risk losing it. You have no experience in picking an investment product that would satisfy Nationwide as being fit for purpose. If there is no urgent need to buy then sit tight and save until you can afford a repayment mortgage. This is not the news you want to hear but in my view it makes financial sense.
J_B.

lowis

hi joe

my Right To Buy my flat expires in approximately 3 months - i can not afford to buy a place in London on my own otherwise. if i want to buy this flat then i have to take the opportunity now.

i guess i am happy to risk £245 to secure the mortgage at the current interest rate available (rises on the way i think). once i have paid this fee then i get 3-6 months from the Nationwide to actually sign on the dotted line. it is the best mortgage i have seen to be honest for my situation and i don't want to lose it.

i am meeting with a Nationwide FSA later to discuss plans and also to enquire further a to what the Nationwide would require from me in terms of the plan. any advice i get from him i will apply to searching elsewhere as well onbviously :-)

Joe_Bloggs

Best wishes and good luck with your situation. I had no idea that buy to let had a time limit.
J_B.