Transfer of Equity shocker!!

wildcardsa

Hey all,
Before I post my current issue, just had to say how brilliant it is that as a community, we all help solve problems so quickly and effectively and all my previous questions have been answered - thanks to everyone!

Now that's said - Here's my problem: My wife and I are getting divorced and I'm attempting to take over the house. Its all amicable and we have had no issues with mortgages or bills before. So a few weeks ago I went into Nationwide to organise a transfer of equity. I an "affordability " test conducted and was told that they would indeed offer me a sole mortgage enough to cover my current loan, so all appeared fine. Today I went in to make the official transfer of equity application and was told the other mortgage advisor was no longer working for them and had accidentally run my affordability test as a New housebuyer and not as a current borrower. They now state that my affordability test failed and is £14000 short of my current loan. They no longer will honour the mortgage if I decide to request as a sole applicant?!
The advisor failed to offer me any other options and now I come to you seeking advice.
Surely if Nationwide would give a new housebuyer a higher mortgage than a current customer, likewise other lenders would too, and I should just attempt to remortgage instead??

I don't want to have to beg/borrow and steal £14000 from somewhere merely to keep the mortgage I currently have?
Any ideas? my folks have shown willingness to help provide the money, but then I will be shelling out repayment costs to them instead when surely I dont need to?

The figures are as follows: LTV for the property is 85%, I earn £33700 with approx £4000 overtime yearly. The current loan I require is £171000 but they will only offer £157000? I have no other loans/debts or credit cards. I am very good with money and budgetting and can comfortably afford my current payments at just under £1000 monthly, so why all of a sudden they see me as a huge risk as opposed to a new customer?
Please advise guys and gals.....

GMS

Could you possibly extend the term to make the mortgage possible? Other than that you may need to look for a lender elsewhere.

wildcardsa

I thought, the problem seems more with the final loan amount as opposed to the actual repayments though? Don't know why the advisor didnt really give me any options?

GMS

Extending the term may mean more borrowing available.

Try putting your details in the calculator
https://portal.nationet.com/nationwide/affordability/%285uy3qz45ckryml45isjfpemj%29/start.aspx

Thrugelmir

wildcardsa wrote: »

can comfortably afford my current payments at just under £1000 monthly, so why all of a sudden they see me as a huge risk as opposed to a new customer?
Please advise guys and gals.....

And if interest rates rise 3%?

Its not now that matters.

wildcardsa

Now that portal calculator says they will offer me £171000!!! That covers my mortgage, but the advisor said that offer was for new housebuyers only, not refinancing?

Thrugelmir

wildcardsa wrote: »

Now that portal calculator says they will offer me £171000!!! That covers my mortgage, but the advisor said that offer was for new housebuyers only, not refinancing?

Only a guide.

The computer makes the ultimate decision.

GMS

Affordabilty calculators are a guide only but the point was to try to extend the term and see if it increased borrowing. If fo this may have been an option for you to go back to Nationwide to discuss. If it made no difference then probably not an option.

You may benefit from speaking to a broker. They would be able to check different lenders and affordability for each.

wildcardsa

Thanks guys....am approaching one tomorrow. I did leave a request for the Nationwide guy to call me back, but he never did.....so their Customer Service is dire in my local!

wildcardsa

Great - the mortgage broker my friends all highly recommend is on holiday until the end of next week....typical! But i soooo want reassurance I''m not going to lose my house now! ;(

Morgage_Confused

how are you going to loose your house? its far from that point.

worst case scenario just continue as you are and slowly pay down the mortgage till they say its in your "zone"....which looks like approx 14k worth of capital payments.