Hekp needed for first time Mortgage Buyer

villa2010

Hi Folks,

Help and advice needed here.

My partner and I are currently in the process of applying for a mortgage for a shared ownership house.
( I know people say they are a bad idea!!!)

We have a Broker and we were advised to go with nationwide by the broker as they were offering the best deals.

the application process for a mortgage with nationwide has so far take over a month and a half.

We meet the criteria in terms of salaries, job contracts, credit checks, deposit and practically everything else. Our broker was confident we could get a mortgage.

However Nationwide seem to be taking ages to get back to us with a reply and it seems as though there are stalling and making excuse after excuse. Initially we were told the process would only take 2-3 days when we had process all of the admin.

Since then they have come back and asked for the following not all together but one after the other, which has proved to be very time consuming.

-Letters from both of our employers confirming our employment.
- A clearer photo copy of out ID. This took an extra 2 days.
- Another forrm of ID from me as my passport does not have all the numbers they require. (3 days)
- reference from our landlord ( do they have to do this as we don’t want to tell our landlord we are leaving in case he chucks us out- this is the latest thing they have said)
- my partners letter from her employers was addresses “ to whom it may concern” . Nationwide then said that should have been titles to them so we had to get another one. (1 week)
-They told me they had to run credit checks on my perivous addy from my driving liscense. This then took a week

I would not mind if they told us all of the above at the same time but it seems to be one thing after another and this is proving to be frustrating.
-

Are they just reluctant to lend and looking for excuses not to lend

Or

Are they just being genuine

Should we look for another Mortgage lender or stick with this one.

Any advice would be greatly appreciated.

Many thanks.

villa2010

If any one could help that would be great!

_Andy_

What has your broker said about it?

opinions4u

Shared ownership loans tend to be amongst the highest risk residential lending that you can take on. Arrears rates are higher, it's more complicated to repossess and repossessed properties are harder to sell.

Invariably the borrower has the minimum deposit allowed and is making a clear statement "I can only afford half a house" (or whatever share it may be).

It is absolutely right that it is underwritten carefully and properly.

reference from our landlord ( do they have to do this as we don’t want to tell our landlord we are leaving in case he chucks us out- this is the latest thing they have said)

Well if you've not paid your rent for the last few months, it's only fair that they know prior to agreeing a mortgage with you. Worst scenario is your landlord giving you two months notice. Highly unlikely that he'll do that if you're good payers though. He'll wait for you to give your notice.

my partners letter from her employers was addresses “ to whom it may concern” . Nationwide then said that should have been titles to them so we had to get another one.

Perfectly reasonable to require a properly addressed reference. It creates a legal liability for the accuracy of information. Fraudulent references are often addressed "to whom it may concern".

I would not mind if they told us all of the above at the same time but it seems to be one thing after another and this is proving to be frustrating.

I'm sure it is. But if your driving licence is showing an old address (which you can get fined for), your employer's reference is inadequate and the ID documents you have provided are in some way incomplete then they are going to ask more questions.

Are they just reluctant to lend and looking for excuses not to lend

Those responsible for approving the loan are covering their backsides very sensibly by asking for proof that you exist, that you can afford the loan and that you don't have a trail of bad debt behind you.

Should we look for another Mortgage lender or stick with this one.

There aren't many lenders that are in the shared ownership market. Halifax, Nationwide. Anybody else? You have employed a broker. What's he doing to push things along? He should also have set you expectations on timescales for this sort of high risk lending.

villa2010

. What's he doing to push things along? He should also have set you expectations on timescales for this sort of high risk lending.[/QUOTE]


Hi thanks for getting back you have obviously spent a lot of effort on my question for which we are both really great full so a big THANK YOU!

This is the thing the broker said that he has 26 years experience and he has a lot of experience with shared ownership properties.

We submitted the admin at the start of December to which we were told we should have an answer in a couple of days. Quite a considerable time later than two days we are waiting for an answer...!

I understand that they have to make the appropriate checks. But what I don't understand is why they don't check through everything and then get back us say you have to do A, B, C, D and E and then we will be able to make a decision. As this would save them money and time as well as us and are broker!

needo19

I am first time buyer, I and my wife wants to buy a house.I am German national and my wife is Pakistani national. i have been living and working in the uk for more than 5 years not where my wife came in Dec 2008 to Uk.
The house I am looking for is not very expensive and i am willing to put 10% deposit on it.
I work for natwest, my appliatiion has passed credit scoring but still came back as reffered. I am very worried about it. I was told that it will take 1 day to get the answer , i am so impatient that i can not wait for tomorrow. i was reading on here about different people experiences , is it due to my wife being pakistani national? or is it due to my contract being shortened as i have requested because of my disabled son, I can not sleep i would like to know what does reffered means and what is chance of getting it rejected .

newyear2011

Recently I have had many a customer come to see me as their Nationwide mortgage was taking ages and they were danger of loosing the property (applications were taking 6-8 weeks) these were run of the mill applications in my opinion and I had a mortgage offer out to them this week. I work for a high street bank. Very few lenders do shared ownership
What I would say is the Nationwide have reason regarding the driving licence (was that previous address disclossed at application stage?)
You may find that you are boarderline pass and thats why they are checking so much so I would suggest sticking with it unless you can find a better rate/sellers putting you on tight timescale etc as you don't want to get another credit search done.

jayphe

villa2010 wrote: »

...
I understand that they have to make the appropriate checks. But what I don't understand is why they don't check through everything and then get back us say you have to do A, B, C, D and E and then we will be able to make a decision. As this would save them money and time as well as us and are broker!

Flip the situation on it's head and look at it more positively. The information you presented at the start of the process did not allow them to underwrite your mortgage. They could have just rejected you there and then, but they are giving you every benefit of doubt and allowing you to answer their questions. Much better than a fast process that just rejects you.