Getting a 2nd mortgage in principal

freeman3030

Hi all,
We're first time buyers with a mortgage in principal with Abbey. We've had our offer accepted on the flat we liked so I phoned my mortgage advisor this morning to get the ball rolling with doing the mortgage application.
I got a phone call this afternoon from him saying that Abbey wont lend to us because they won't allow a 90% mortgage on a flat - but they will on a house. To buy a flat, we'd need a 15% deposit with them.
So he said that he was going to get an agreement in principal with Nationwide as they will allow a 10% deposit when buy a flat in preparation for our meeting on wednesday.
My main concern is that if our mortgage in principal is declined with nationwide - what are we going to do?
Am I worrying over nothing? Abbey has already given us an agreement in principle so hopefully other lenders will too. But is Nationwide more strict with who they will lend to?
If we're declined our credit rating will decrease and we could loose the flat we've offered on!
I'm so nervous and our mortgage advisor isn't in the office tomorrow, so I can't phone to find out the outcome of our agreement in principle with Nationwide!

Thrugelmir

A DIP is not a guarantee of obtaining a mortgage. Your broker should be aware of what lenders in the market will consider a 90% LTV on a flat.

freeman3030

Thanks for your response, I understood prior to my initial post that a DIP is not a guarantee of obtaining a mortgage, but already having one agreed with Abbey made me feel far more confident of a successful mortgage application. Now I feel in limbo because we've got to get a DIP with nationwide before we can start our application.
I agree with what you say, a broker should know what lenders will consider a 90% LTV... I'm now just worried what's going to happen. It's out of my hands, but I'd be interested to know how strict Nationwide is as a lender?
We're borrowing just over 3x our combined salaries - if thats a good thing or not?!

Thrugelmir

freeman3030 wrote: »

We're borrowing just over 3x our combined salaries - if thats a good thing or not?!

One of many potential factors. So impossible to comment. Except to say contrary to what you may believe reading this forum. Vast majority of applications are processed without an issue.

freeman3030

Ok thanks, I guess I'll just have to hold tight until Wednesday. Fingers crossed for a positive DIP, then hopefully onto a successful mortgage application. I'm so excited about buying our first home, but equally as nervous. Just hoping for a smooth buying process - or is that asking for too much! Lol

EMac_2

Sounds to me like you will be fine. Not much between Abbey & NWide when it comes to criteria and I'd generally say that if Abbey said yes then so will NWide. Two credit searches isn't going t damage your credit file and there is a good reason you didn't proceed with Abbey i.e. they wouldn't do 90% ltv on a flat, I'm sure NWide get a lot of these transferred cases. If you have a decent broker and a decent solicitor it should all go through with the minimum of stress. Best of luck