Nationwide Mortgage Disaster

steveninthesun

They didn't have all the details and with this scheme had to contact the Association first - we've got the documents to say they contacted them to run the valuation. These are dated Friday.

steveninthesun

I'm going to speak to the manager of the woman who took our original application today (can I say people's names here?).

The issue:

- She said on the Friday morning that all fees would be refunded

- Since Halifax said yes straight away, I spoke with another member of staff at Nationwide who tried my application again on the Monday. They discovered that the original application had contained a mistake: the woman had included my second/freelance income. But as I have only been working freelance for 1.5years that this should not have been added (and that only existing Mortgage customers might have this included). They couldn't confirm if this was the reason for the fail this time around, but it appears that my original application should not have gone through due to human error at Nationwide.

- The paperwork from Nationwide with the fees is dated Friday, after my application was refused.

GMS

I always tell lenders to not instruct the valuation until they are happy with all other elements of the case. This should mean that the only thing to go wrong at that stage is related to the property.

If your application was declined prior to the valuation then you have a case for a refund as there has been no cost to Nationwide, therefore nothing for you to pay.

From what you are saying the error has been made by the lender. Personally I would refer it to a senior manager for a possible exception. This may not be possible, especially if they deem it to be unaffordable but the fact that you have other income, albeit for slightly too short a time could be the grounds for an exception due to their errors.

Unfortunately these things happen when applications are made direct. Mortgage centre staff are not always fully aware of their own criteria and will cause problems further down the line. A broker would ensure all criteria was met and affordability passed prior to an application.

Originally you said you changed from joint to sole. Which one was the original pass?

steveninthesun

The joint was the pass with Nationwide. Other lenders have been fine with the sole.

AMILLIONDOLLARS

So basically because your partner is a stay at home mum, you wanted to purchase the property soley in your name, that's why you changed the condition at the last minute. What happens if your partner decides to return to work, and contribute to household expenses will you add her to the mortgage then?

You started your post with "We went to Nationwide and ended with I" Serves you right, because you wanted to exclude your partner you have now have lost the property you were after.

AMD

steveninthesun

My wife was the one who asked them to change it to a sole account. We have a family and will be having more children - she has never had a full time job in this country and won't be returning to work for a long time to come.

Thrugelmir

steveninthesun wrote: »

My wife was the one who asked them to change it to a sole account. We have a family and will be having more children - she has never had a full time job in this country and won't be returning to work for a long time to come.

The issue from the lenders point of view is that if your wife is not on the mortgage but on the property deed. It will have problems in repossessing the property should you default on the mortgage.

The impact of your wife having no income is an affordabilty one. In that your income will be necessary to support her.

steveninthesun

Hi Thrugelmir,

I see.. thank you. We must seem incredibly naive - every time I log in to the forum, someone has explained something new to me.

I think GMS said it best when they asked if we have considered a broker. I will not be going to a lender direct in the future because not enough information is explained about these finer points. And I've no way to know otherwise.. my parents bought their house over 30 years ago and just haven't been able to explain anything about this process, other than that it is expensive.

I just want to finish by saying that Nationwide today refunded all our fees, partly direct into the account and partly by cheque.


It goes without saying what this means to my family at this time of year.

They had originally promised this, and it appears that the original app contained my secondary income by their own error - which another member of staff pointed out.

Thank you to everybody for all the patient explanations, except to AMILLIONDOLLARS for their comments.

(Merry Christmas)

GMS

Great news. Common sense seems to have prevailed. Well done to Nationwide for partially resolving a difficult situation. Although you do not have the mortgage in place at least you are not out of pocket.

To broker or not really is a personal choice. I doubt you would have been in the situation you were had you gone down the broker route but some people do not see the point in using a broker when they feel they can do it themselves.

Should you choose to proceed with another application a broker will usually be happy to discuss the deal with you initially to see if it is viable.

Glad you have found the information you received (or the majority of it) to be useful.

Enjoy Christmas and take stock in the new year.

Good Luck