Nationwide Mortgage Disaster

steveninthesun

We went to Nationwide to take out a mortgage for a part buy/part rent scheme through Devon & Cornwall Housing Asscociation.

Nationwide are 1 of only 4 places which will offer a mortgage on this scheme.

We started 120th on the waiting list for a property, and then finally my family were offered a viewing of a property and after a huge amount of paperwork we were accepted to buy the property.

Nationwide had approved our mortgage application for £64,000 with £11,000 deposit (40% of the property value, and 15% deposit on the value of the loan).

On the day we needed them to send off the paperwork for the Housing Assoction to proceed, we spoke to Nationwide and updated our details - changing the application from a joint to sole.

Nationwide then told me that I was high risk and that the application had come back as a no. I was told not to contact them for at least 6 months as the application would keep coming back 'no'.

I spoke to Halifax who gave me their highest score and were happy to proceed with the application. But Halifax needed 20% deposit which we can't afford.

Depending on who I talk to at Nationwide, opinions vary and no one can really tell me why they said yes, took our money/fee and then decided I was a high risk.

My family are gutted - we desperately needed to move and this was our one chance to find a home in the part of the country where I work. We can only afford to buy through this scheme and it was hard work to get this far.

I just wanted to warn anyone who goes to Nationwide.

ILW

You changed the terms of your application at the last minute, they would then re evaluate it.

opinions4u

we spoke to Nationwide and updated our details - changing the application from a joint to sole.

That's a pretty significant change. Why did you do that?

GMS

Changing from joint application to sole application may have affected affordability. Without knowing your circumstances it is impossible to say.

Grossly unfair to warn people off Nationwide for this

Gorgeous_George

It's not clear if the 'no' from Nationwide was due to the change from a joint to sole application.

steveinthesun - how much more do you need to meet Halifax's criteria? Could you borrow it from family/friends or take a personal loan? (perhaps your partner could take the loan if he/she has a better credit rating).

GG

steveninthesun

GMS: it's 'grossly unfair' that they won't tell me why. I can get a mortgage anywhere else but Nationwide were offering for a 15% deposit. With Halifax, for example, I cannot afford their 20%.


Gorgeous George: I have an excellent credit rating which is why I'm so utterly shocked that this has happened.

I only needed another £2k to be able to afford the deposit with Halifax. I have no one to borrow the money from –!and my partner is a stay-at-home mum who couldn't help me pay a loan. I have a car loan already and it would be a stretch to take out another loan, pay the mortgage, pay the Association rent (£120pm) and car loan.

steveninthesun

GMS wrote: »

Changing from joint application to sole application may have affected affordability. Without knowing your circumstances it is impossible to say.

Grossly unfair to warn people off Nationwide for this

I should add: I am more affordable with a sole as my wife is a stay-at-home mum. Although she works freelance, she has not reach 1 full tax year yet, and they would want 2 to be able to process her wage on the application. Hence the sole.

InMyDreams

steveninthesun wrote: »

I should add: I am more affordable with a sole as my wife is a stay-at-home mum. Although she works freelance, she has not reach 1 full tax year yet, and they would want 2 to be able to process her wage on the application. Hence the sole.

That's not a reason to go sole. Why rock the boat? How would sole make you more affordable? I would put her back on if the damage hasn't already been done.

My husband and I are (and always have been) both on our mortgage, despite it only being based on my husband's income. (I do have an income from self employment, but we didn't need it to borrow what we wanted so we didn't bother including it on the application. My most important job is also SAHM so we didn't want to base our affordability on my income anyway, just in case.)

Did your initial application include your wife's income?

steveninthesun

Hi there. As my wife has been self-employed for less than 24 months, we have been told that her income won't count.

I've asked if we can change back to the original application but we are now not qualifying and they can't tell me exactly what has happened. Every time I speak to someone they give me a different possible reason.

I've been advised to come back in 6 months. We can't go anywhere in the meantime as the deposits are higher but I won't be going back to Nationwide.

TrickyDicky101

Irrespective of whether the joint applicant has his/her own income or not, removing them from the mortgage application will always lead to an increase in risk to the mortgage provider as suddenly there is one fewer persons to go after under joint & several liability upon default. Whoever advised you to change your application (if anyone did) should have made you aware of this.

brit1234

steveninthesun wrote: »

I've been advised to come back in 6 months. We can't go anywhere in the meantime as the deposits are higher but I won't be going back to Nationwide.

Personally it seems clearly your fault and not Nationwides.

Waiting 6 months is sound advice. Property prices will be cheaper and gives you time to save a bigger deposit. It also gives you time to look up the dangers of shared ownership which I wouldn't wish on my worst enemy.