Nationwide affordability criteria changes

becandmike22

Has anyone experienced this?

House is up for sale - obtained a mortgage promise from Nationwide at end of Jan 2010 for £142k valid for 3 months.

Got buyer for our house and found one we wanted. Put in application about a week before mortgage promise expired but was told that Nationwide have now changed their affordability criteria and we now may not be accepted for the mortgage - this was only mentioned after paying for survey and fee for holding the mortgage product. Had a play with figures and max will lend according to this is £110k - when first got mortgage promise was quoted max as £175k.

It seems Nationwide have really moved the goal posts in terms of assessing affordability - had anyone had a similar experience?

benjaminM

becandmike22 wrote: »

Has anyone experienced this?

House is up for sale - obtained a mortgage promise from Nationwide at end of Jan 2010 for £142k valid for 3 months.

Got buyer for our house and found one we wanted. Put in application about a week before mortgage promise expired but was told that Nationwide have now changed their affordability criteria and we now may not be accepted for the mortgage - this was only mentioned after paying for survey and fee for holding the mortgage product. Had a play with figures and max will lend according to this is £110k - when first got mortgage promise was quoted max as £175k.

It seems Nationwide have really moved the goal posts in terms of assessing affordability - had anyone had a similar experience?

Nationwide have unfortunatley followed suit with the rest of the lenders by using affordability calculators rather than income multiples. Nationwide used to offer 4.1 x Salary which was brilliant. This has now been abolished and been replaced with a far more complex way of determining how they will lend which in many cases means they will lend less.

Conrad

Audiences on Question Time, applause every time Vince Cable bangs on about a return to old fashioned sensible lending.

Those audience members assume this tightening is a good thing, until they themselves come to get a mortgage.

The regulator is breathing down the necks of lenders to lend more cautiously. You the general public need to complain to your MP's as what is happening is mortgages are being put out of the reach of some ordinary people, meaning the middle classes get richer whilst others are forced to rent. Politicians are not yet aware of this.

OP - simply try other lenders. I have found Halifax and C&G to be better on the lending multiple front.

Thrugelmir

Conrad wrote: »

Audiences on Question Time, applause every time Vince Cable bangs on about a return to old fashioned sensible lending.

Those audience members assume this tightening is a good thing, until they themselves come to get a mortgage.

The regulator is breathing down the necks of lenders to lend more cautiously. You the general public need to complain to your MP's as what is happening is mortgages are being put out of the reach of some ordinary people, meaning the middle classes get richer whilst others are forced to rent. Politicians are not yet aware of this.

OP - simply try other lenders. I have found Halifax and C&G to be better on the lending multiple front.

There is a balance to be made with mortgage lending. I believe Vince is referring to business rather than consumer lending.