Nationwide Mortgage Offer Conditions

Mortgage_Newbie

Hi,

I have today received a mortgage offer from Nationwide which is excellent!

There is a special condition that I need to repay credit card debt which was showing up on my experian report although I have already cleared it. This is therefore not an issue, but the condition reads:

'While these debts may be repaid from the proceeds of this loan, they may not be transferred to any other lender. Your ability to afford this loan has been assessed on this basis.'

The issue I have is that I have got a loan for a new car which was granted on 3rd February 2012. I've checked but it is not showing up on my Experian reprt yet, when I submitted the mortgage application Nationwide asked for details of any payment unsecured loans with over 6 months to run. I disclosed the loan payment and it was taken into account on my affordability check.

I've spoken to Nationwide today and they have confirmed that they do not credit check again at release of funds on completion and that they leave it to the solicitor to confirm that conditions of the mortgage have been met.

Even so I cant help worrying about them pulling the mortgage offer!

I am panicking about nothing here?

Thanks for your help!

GMS

As long as you have declared all commitments to the lender which will remain on completion then you have no worries. If they do anither credit check and the new loan shows up then it should tally with what you have decleraed to them.

If you have already cleared the debts in the offer conditions then dont worry about this. Just give the solicitor the confirmation if requested

Mortgage_Newbie

Hi GMS,

Thanks very much for providing me with peace of mind so quickly!

FTBworrier

Hi,

I am an FTB and I am currently applying for a mortgage with my boyfriend. We are applying with Nationwide and found a house and got a mortgage offer for £130k, however subsequently decided to withdraw from the purchase.

We have now found another house so my IFA has submitted a change of materials form to give Nationwide the new house details and change of purchase price which is £135k. This is still within budget for the amount we were initially agreed in principle. We are waiting for the survey to be done.

I have a car on finance which was declared in original mortgage application but I am due to change it. I have found a new car which would lower my monthly payments by £30pm but I am worried about going ahead for fear of it affecting our application due to a credit search on my file.

Would this be the case even though it would be saving me £30pm?

Thanks

kingstreet

From an affordability point of view, it may be a good thing.

However, it's new credit which never is, during a mortgage application. We routinely tell anyone not to apply for any new credit between making a mortgage application and the purchase completing.

Do you have to make this change now? Can it not wait until after completion?

If it can't, speak to your broker.

FTBworrier

I would be fine to wait till after completion, however when we pulled out of the first house we had no idea how long it would take to find a new house so thought we may as well press ahead with changing my car. I found this deal and was about to sign when we had an offer which had previously declined accepted so I have not signed but a credit check has been done for the offer.

I can hold off signing the deal and therefore keep my current car but has the damage already been done with regards to the search on my file?

My broker does not see it as a problem but wanted a second opinion because I am a big worrier!

Thanks

hamster2013

if you have not signed, and if bank query, you can always explain what you just told here: i.e you thought you would be renting for a while, and now that you are committed to buying you will NOT be changing your car and will be paying them as per agreed

just because you did a simulation with a car vendor does not change their offer, not that I would think