Worried abt mortgage application - is our situation too complicated?

shar46y

Apologies for the long story – I’m not really expecting answers but just hoping for reassurance.

We are relocating to another city 100 miles away, due to OH being offered a good job which will start in September. If all goes smoothly, we will be moving in April/May, this is because we found a buyer for our flat unexpectedly quickly – so we went househunting and offer was accepted a couple of weeks ago.

We have applied to “port” our existing Nationwide mortgage (although I know there is really no such thing) plus borrow a bit more in order to buy this house. We will be going for 65% LTV.

So this is where it starts to get complicated and I am worried that the Nationwide will reject our mortgage application even though we have tried to explain everything to them from the beginning.:(

If the move goes according to plan, OH will still be working for his current employer until Sept and will combine working from home with probably going into the office a couple of times a week as it is not too far by train. I’m currently working full time and the 2 DDs are in nursery, my salary covers their nursery fees with a bit left over. Once we move, I'll stay at home in order to settle the family in properly. I’m not sure how long it will be before I then go back to work but then at least our childcare costs will be zero.

When we told Nationwide about all this, the advisor (all dealt with over the phone) just said that they can only make their decision based on our current situation, not our future one. This seems a bit mad to me, since they know our situation is going to change.:question:

At first in the application pack they asked only for current payslips and P60s, then a few days later asked us to write a letter explaining why we were buying a house 100 miles away. I’m worried now that they’re going to object to OH’s lack of a job in the new city until Sept, or not believe that he will still be employed in his current job. And that they will suddenly realize that I will be jobless once we move.

Also, OH’s parents have given us a chunk of money towards the purchase of the house. I know, we are incredibly fortunate and very grateful. Although we have some savings of our own, we decided to hang on to those as to cover moving expenses and as a contingency fund.

We told Nationwide that we would be using this gift (plus the equity from our flat sale) as the deposit for the new house. Then a week after we sent in our application, they asked for a letter from OH’s parents. This is understandable but I’m worried why they didn’t ask in the first place – it’s as though they are only just waking up to what we told them and are asking for documents piecemeal. It is too late now, but maybe we have just said we were using our savings for the deposit and not mentioned the gift (as the money is already in OH’s bank account by now)?

Wh05apk

I did a similar mortgage with Nationwide recently where they were relocating, and they were happy to lend, they will probably want to see the contract for the new job though.

Is the job similar to his current one? I assume they will not be including your income for affordability?

Unfortunately, at the moment, this is how lenders seem to be working, process something, then realise they are missing something, then reasess and find something else, a good broker, should be able to anticpate waht they will ask for , and supply everything up front.

shar46y

Wh05apk wrote: »

I did a similar mortgage with Nationwide recently where they were relocating, and they were happy to lend, they will probably want to see the contract for the new job though.

Is the job similar to his current one? I assume they will not be including your income for affordability?

Unfortunately, at the moment, this is how lenders seem to be working, process something, then realise they are missing something, then reasess and find something else, a good broker, should be able to anticpate waht they will ask for , and supply everything up front.

Thanks so much for your response!

OH's new job is similar to his current one, but in fact will be a step up the career ladder plus a small pay rise:j

I am not 100% sure how they calculated affordability for us, as we tried to explain to Nationwide repeatedly that I have not yet found a job in the new city and thus will be a stay-at-home mum to begin with. It should effectively make no difference as my salary now is almost completely used for nursery fees.

Wish we had used a broker, but contacted Nationwide directly because our mortgage is already with them.

shar46y

Quick update - more days have passed and Nationwide just contacted OH to ask where the rest of the deposit is coming from, when we already told them it is the equity from our flat sale which is underway :mad:

They've asked for an email to that effect, wonder how many days will pass before they decide they want a letter instead? Or realise some other document is missing?

sherrybaby

Nationwide do seem a little haphazard with their requests for information, our AIP to offer took nearly two months! We were quite complicated though (other properties, partner SE). We got there in the end though! Good luck

shar46y

OH just rang Nationwide to find out what is going on since he heard nothing after he emailed them (at their request, remember!) regarding the equity from our flat sale, only to be told that the person handling our application does not have email access!!!:mad:

shar46y

A further update in our mortgage saga...

We ended up sending Nationwide a snail-mail letter regarding the funds for the purchase, didn't get an acknowledgement of course.

After several unreturned phone calls to them, OH finally got some information out of them yesterday - our case went to the underwriters yesterday lunchtime and we would "normally" expect a decision within 48 hours!:j

But in the meantime, end of last week we got our survey report plus a giant stack of documents from our solicitor and it turns out the house was underpinned almost 20 years ago. We are now having wobbles about whether we want to go ahead with the purchase, and worse still we don't know whether the Nationwide know about the underpinning (they did a separate valuation survey).

So, urgent question: if they don't know, do we need to tell them??? Don't want to have gone to all the trouble of getting this mortgage only to have it pulled! HELP!!!

kingstreet

If the valuer values the property at the purchase price, the underpinning issue becomes a matter for insurers, not for the lender. Nationwide won't be bothered as long as it can get its money back in a repossession situation.

From your point of view, you might find it more difficult to sell it later because of the underpinning and you might have to use a specialist insurer. Talk to the vendor. See who insures them and how much they pay.

The good news is - once the Nationwide makes you an offer, you should be able to change properties, if you choose to do so, with only a new valuation fee to pay and no more status checks. Assuming you don't need a bigger mortgage, of course.

kingstreet

Just to make clear, the surveyor will make Nationwide aware of the underpinning if he found evidence. If the solicitor finds it in the deeds pack, he'll also make Nationwide aware. As I said, it's all about the value and the security.

beecher2

shar46y wrote: »

But in the meantime, end of last week we got our survey report plus a giant stack of documents from our solicitor and it turns out the house was underpinned almost 20 years ago. We are now having wobbles about whether we want to go ahead with the purchase, and worse still we don't know whether the Nationwide know about the underpinning (they did a separate valuation survey).

So, urgent question: if they don't know, do we need to tell them??? Don't want to have gone to all the trouble of getting this mortgage only to have it pulled! HELP!!!

Phone up your solicitor for advice

shar46y

kingstreet wrote: »

If the valuer values the property at the purchase price, the underpinning issue becomes a matter for insurers, not for the lender. Nationwide won't be bothered as long as it can get its money back in a repossession situation.

From your point of view, you might find it more difficult to sell it later because of the underpinning and you might have to use a specialist insurer. Talk to the vendor. See who insures them and how much they pay.

The good news is - once the Nationwide makes you an offer, you should be able to change properties, if you choose to do so, with only a new valuation fee to pay and no more status checks. Assuming you don't need a bigger mortgage, of course.

Thanks so much! Just wasn't sure whether it was our responsibility to inform the Nationwide. Our solicitor has all the documents relating to the underpinning, so I guess he will be the one to do it (assuming their valuation survey didn't already pick it up).

Yes we are aware of the insurance and selling on problems, which is why we are feeling a bit uncertain about this house now. Awaiting response from the vendor on who insures them.

Just have to hold our breath and wait for the underwriters now... they way they've been going, might end up holding my breath for 48 days rather than 48 hours