Declined for mortgage with Nationwide - why?

Supercoolrae

Hello all
Wondering if someone can help me understand why Nationwide won't give me and my husband a mortgage.....

We have a combined income of 75K and have worked consistently for the last 6yrs since completed our postgraduate degrees.
We're looking to buy a house with maximum value of 300K and have a 15% deposit (50K) plus 'extra' savings for stamp duty and costs.

I have been a member of the society for almost 20yrs and have multiple accounts with them - all our savings are with them and we run our current account with them also.

The (VERY patronizing) mortgage adviser in our local branch tells us that the issue is that from Aug 2005 until April 2010 we were both living and working in California. We returned to the UK in April this yr and began new jobs (that we had already secured) almost immediately upon our arrival. Even though we kept our current account open (although no money was going in or out on a regular basis) and remained on the electoral roll, she said it's as if 'we have been in prison' so have bad creidt. Well, I checked our credit. We're both over 920......

We both had well paid, career progressing jobs in the states and have the pay slips to prove it. She said that any jobs/credit rating outside the UK doesn't count and we were 'over optimistic' asking for 250K loan on a 300K house (we live in the South of England so not unreasonable for our area!). She punched in numbers for a 200K loan but we were STILL rejected.

Is Nationwide just being Nationwide and using any excuse to not lend money or is this really the case? Are we going to be able to get a mortgage from anyone? I can't erase history. We worked abroad for 5yrs for our careers and it seems cruel that we should be punished for this.....

She's going to 'talk to head office' but if she doesn't come back with a 'yes' I'm going to have to close our accounts down as I really don't see the 'benefit' of being a 'member' any more..... :mad:

If anyone has been in a similar situation I'd love to hear any advice
Thanks!

JonnyBravo

I have no advice for your situation other than to tell you to follow through with your threat if they don't offer you anything.
I had my mortgage with them a few years ago and found them very unhelpful in trying to arrange a new mortgage 2 years ago. I had a long history with them. I voted with my feet. First Direct now get my money. Nationwide show no "loyalty" to customers so deserve none back. (Please note I'm not suggesting this is unusual for a bank)

opinions4u

Well, I checked our credit. We're both over 920......

And the people who score you at 920 don't lend you the money, so it's meaningless.

You have no UK credit history of any value for most of the last 6 years. That's why they've declined you.

Try a whole of market broker and take it from there.

mjmal51

My buyers last year were ftbs, had good incomes and a 25% deposit. They had been back in the UK for a year paying a high rent but had been working in Spain for 10 years before. Although they had a mortgage in principle they were turned down by 3 banks before finally adding one of their parents as a borrower in order to get a mortgage from a 4th bank.
So you are not alone, it is just too difficult these days.
They used a broker for the first 3 attempts and went direct to the bank for the successful attempt.

herbiesjp

This does not sound right.

You will be able to get a mortgage - with which lender depends as usual on your own particular circumstances.

As highlighted above, you should talk to a whole of market adviser.

blueberrypie

supercoolrae wrote: »

The (VERY patronizing) mortgage adviser in our local branch tells us that the issue is that from Aug 2005 until April 2010 we were both living and working in California. We returned to the UK in April this yr and began new jobs (that we had already secured) almost immediately upon our arrival.

From the lender's point of view, you have a life in California. For all they know, you might decide to move back there at any time (and in the gloom of a grey mid-winter in the UK, who could blame you...) and if you do that without paying off the mortgage, they're stuck with £250k that they can't chase you for.

You might not have any such plans, of course, but lenders have to take these things into consideration. Some lenders will consider it more important than others, of course - and that's why you should speak to a whole-of-market advisor rather than talking to your own bank (where the "adviser" is only able to sell you their own products, and is certainly not going to advise you to go and talk to the bank next door which is offering a far better deal).

The 920 is meaningless, by the way - each lender has its own method of scoring and a generic number from a credit recording agency is of no value whatsoever.

DWW

I don't think the credit agency score is completely meaningless as lenders do check them. Scottish Widows checked mine during a recent mortgage application. Nevetheless I accept the point that lenders have their own criteria which is more important to them.

Thumbs up to all who suggest you use a market broker. Bin Nationwide if you're fed up with them!

blueberrypie

DWW wrote: »

I don't think the credit agency score is completely meaningless as lenders do check them. Scottish Widows checked mine during a recent mortgage application. Nevetheless I accept the point that lenders have their own criteria which is more important to them.

Lenders don't use the score as part of their decision-making process. They use the information provided to them by the credit record company - what other credit you have, how you have maintained it, etc - but the score itself means absolutely nothing to them. Don't waste your money paying for it - it tells you nothing about your chances of being accepted for credit of any kind.

GPR

Try getting in touch directly with Nationwide head office?? ask them what else would be required in order for them to give you mortgage eg Parents being guarantor for the loan etc.
Thats about all I can suggest.
Good luck

Thrugelmir

GPR wrote: »

Try getting in touch directly with Nationwide head office?? ask them what else would be required in order for them to give you mortgage

Firstly patience.

There are no automatic entitlements as a saver to obtain a mortgage. You also need to meet the criteria of the respective lender.

The lending market has changed in the past few years and is continuing to change even now as events unfold. In reality though the clocks are merely being turned back to the days when lenders were run by bankers not salesman. Prudence now being the optimum word.

Raksha

I suspect it may have had more to do with the value of the mortgage you wanted against the cost of the house - most lenders won't lend more than 60% at the moment.