Nationwide refused mortgage last min with strange excuse - help!

Simon_gloster

Its not like your application is regular, lots of people own their residential home and want to buy a second home by the sea, nearer teir work etc. As it wont be their main res and not let out they are allowed residential rates as opposed to BTL rates. Again a slightly higher risk as it wont be lived in 24/7, hence the restriction.

Your situation is different but as you say tue line has to be drawn. Its not to be let out, its not his main residence, therefore 2nd home it is.

JimmyTheWig

sweetpeagreen wrote: »

Just wondering, why is there a limit to what they would lend someone who already owns a property (despite the property being mortgage free)?

Maybe statistics show that people are more likely to default and allow their home to be repossessed if they already have another home to go to?

martinsurrey

JimmyTheWig wrote: »

Maybe statistics show that people are more likely to default and allow their home to be repossessed if they already have another home to go to?

exactly,

they give him a 90% mortgage on his second home, he then goes and gets a 75% mortgage on his original house (which the second home mortgage company cannot stop).

he then loses his job, which mortgage doesnt get paid? the second home in 99% of cases...

(not in every case, but the line in the sand is drawn on this basis)

sweetpeagreen

martinsurrey wrote: »

exactly,

they give him a 90% mortgage on his second home, he then goes and gets a 75% mortgage on his original house (which the second home mortgage company cannot stop).

he then loses his job, which mortgage doesnt get paid? the second home in 99% of cases...

(not in every case, but the line in the sand is drawn on this basis)

Hmmmm I see, makes sense, however I wish they would consider cases individually, especially when they have made such a glaring error. My father-in-law has been in his job for 30 years (tube driver TFL), and has a pension pot that currently stands at more than what the flat we are buying is worth. So no risk to them there. I know they could think 'what ifs' but, there's only so much safeguarding for the future you can do surely?

sweetpeagreen

Just spoken to someone at John Charcol for some advise who was very interested in the situation their rivals L&C have out us in! He seemed very honest and gave us some free advice there and then, took all out info, said will search the market, and asked for us to contact him should Nationwide/L&C not fix this error in our favour.

Anyone heard of John Charcol and have an opinion on them?

Leon_W

John Charcol have been around for years but you are aware they charge a broker fee ? minimum of £450 with £150 of that on application.

sweetpeagreen

Leon_W wrote: »

John Charcol have been around for years but you are aware they charge a broker fee ? minimum of £450 with £150 of that on application.

Thanks for your response. Yeah am aware, tbh anything sounds better than what we find ourselves in now! I'll see what they can come up with in their search anyway as that part is free and no obligation thereafter.

I admit I had never heard of them, just came across them on google. I can't find many reviews on them, the few I have are positive though...

GMS

Could your father in law not raise a small mortgage on his current property meaning the second mortgage ould be reduced to fit in LTV limits?

Not read all of the thread so apologies if I have missed the answer somewhere.

Thrugelmir

sweetpeagreen wrote: »

...let's hope because the property is mortgage free and so not a financial risk will go in our favour.

However your mother also has a financial interest in the property. So the matter is far more complex than just financial risk.

bobsyourteapots

sweetpeagreen wrote: »

Unfortunately not...I do do some freelance work outside of my part time job, but this is a new business started only a few months a go, so nothing worth counting at this stage, and I know it won't be considered anyway.

I wonder if there are any other lenders out there that would consider us...?

I just hope a bank can for once honour what was said and take a humanistic approach, although I know, not likely...what a disgrace, messing with people's lives like this.

Did you find out if it was the broker or NW at fault?
personally to me it sounds like the broker didn't include the other property as its mortgage free, i'd be inclined to say it is more his error than the banks.