Remortgage with Nationwide / banging my head against a wall....

sonny_devon

Hope somebody can advise
We are with the Nationwide - Have at present £100,000 equity and 23 years to run with our mortgage of £119,000 on their rate of 2.5%
Want to have an extension to the property / home improvements / debt clearance so requested extra borrowing of £28,000
We have a joint income of £40,000, plus around £5-7000 in child benefit/ tax credits per annum.
We have been advised twice by branch mortgage ''advisors'' that there was no problem borrowing an extra £45,000, and we even have a certificate kindly given to us to show this. We have not lied about anything and produced all paperwork
Our application was turned down on affordibility - we have 3 children which we declared on our application, in fact 2 had to come along to the interview, but they are worried we can not pay the extra amount. Has anyone else been in this situation and can anyone advise of a building society we could approach for a remortgage for a loan of part repayment / part interest only. We have no o/s loans and credit card repayments of £200 per month
Thanks in advance

ACG

Part repayment/part interest only is the problem.

If you have to go on part interest only then there is an issue with affordability.. unless there is another reason you want part on interest only?

Interest only will be a problem with a lot of lenders, is there any reason why it has to be a building society? Im not saying a bank will offer a better alternative, just wondering why your limiting your options.

Lilla

Hi there,

Every bank has a calculator to check your potential borrowing, but then lending is subject to full underwriting including your income, outgoings, dependants, your ages, your credit history, how long you have lived at your current address and dozens of other aspects.

Mortgage 'advisors' in a branch or in the customer service team of a bank are in fact not advisors, but often just sales people who are not authorised to advise you, only to provide information and perform tasks like doing an agreement in principle and giving you a certificate of the outcome, take copies of your documents and go through the application paperwork.

Because of the points above, going direct to a bank is always risky, even if it seems tempting, as in reality it's like rolling the dice whether your requirements fit with the bank's lending terms - in most cases they don't and the bank won't be able to tell you this unless you go through the whole application process.

Many people assume that their current lender or their normal bank will be the easiest place to obtain a mortgage from, as they know you and have all your information...unfortunately, if you don't fit their criteria, it doesn't matter that they know you.

If you speak to a broker, they will take a bit more details and then can find out for you how much you could really get out of Nationwide or what remortgage deal you could get with another lender.

Thrugelmir

ACG wrote: »

If you have to go on part interest only then there is an issue with affordability.. unless there is another reason you want part on interest only?

Picking up on ACG's point. Interest only will be an issue in terms of affordability. Given that you are looking to consolidate debt.

An underwriter may well take the view you are withdrawing equity from the property to fund your lifestyle.

If you can afford a larger mortgage then repay the credit card first. This will put you in a much better position.

Dave_Ham

Also, be really careful considering your options here as your 2.5% BMR will not be bettered anywhere, so you may be advantaging your cashflow in the short term and adding years to your mortgage in the long term..

I would always check those numbers again, Nationwide are strict but you may still fit.

As with anything in our world which is frustrating, your application and success often hinges upon the experience and skill of the person submitting - brokers and direct..

Did they look to extend your term and be entirely on a repayment basis??

Wh05apk

Thrugelmir wrote: »

Picking up on ACG's point. Interest only will be an issue in terms of affordability. Given that you are looking to consolidate debt.

Probably nothing to do with affordability, this is purely down to criteria, Nationwide's maximum for interest only is 50% for new business, you will need to swtch to repayment.

Skinto_7

Dave_Ham wrote: »

Also, be really careful considering your options here as your 2.5% BMR will not be bettered anywhere, so you may be advantaging your cashflow in the short term and adding years to your mortgage in the long term..

I would always check those numbers again, Nationwide are strict but you may still fit.

As with anything in our world which is frustrating, your application and success often hinges upon the experience and skill of the person submitting - brokers and direct..

Did they look to extend your term and be entirely on a repayment basis??

Dave,

Apologies for hi-jacking the thread, i am currently on Nationwides BMR and just about to apply for consent to let, i know there consent to let terms are they add 1.5% to existing rate if accepted, however my question is how likely are they to agree while letting me stay on the BMR?

Thanks

Dave_Ham

Skinto_7 wrote: »

Dave,

Apologies for hi-jacking the thread, i am currently on Nationwides BMR and just about to apply for consent to let, i know there consent to let terms are they add 1.5% to existing rate if accepted, however my question is how likely are they to agree while letting me stay on the BMR?

Thanks

Unsure to be honest, I think so but have not seen one recently to know for sure.

Good luck