FTB mortgage application delined

TurkeyShoes

Hi, after doing a lot of research, and saving up a 10 % deposit, I applied for a mortgage with Nationwide. At my first meeting the advisor took my details, pay slips, ran a credit check (Excellent credit score) etc. She seemed to think that everything was in order, with my finances and deposit. I even moved my current account to one of theirs in order to take advantage of the FTB deals.
I had a property in mind when I attended this meeting, and she even worked out my mortgage repayments if my offer was accepted - they were prepared to lend me twice the amount of what I was wanting to borrow. I was intending on putting an offer in for the property after the deal was finalised.
I arranged another meeting to obtain a DIP and to arrange their valuation on the property, another credit search was done, and I was basically told that I now needed a 15% deposit, not a 10% deposit. They could give me no explanation of this.
I would not have minded, but it was the fact that they told me that there everything was fine with my application, so it was a bit of a shock that they 'moved the goalposts' to 15% so to speak.
I have spoken to an independant broker, and have a couple of other options (Skipton- although I would have to save up more to afford the fees! and Santander) but not sure if I will be told the same in terms of needing a higher deposit.
I am also worried about how the searches will affect my credit score.
Any advice would be appreciated.

ACG

More searches will have an affect, but the alternative is finding another 5% deposit by the sounds of it?

If you havnt got the 5% then you need to decide if its worth the gamble. Personally i would go for it if i had nothing to lose.

TurkeyShoes

Yes, the alternative is finding 5%!.....which would take me quite a while to reach. The property that I am interested in is basically the only one in my price range (what I have deemed easily affordable, after factoring in potential interest rate rises after the fixed rate deal would end) so if sombody snaps it up, there is nothing that I would be able to consider any time soon.
So even if my next application gets rejected I guess I will have a while to rebuild my credit score! Do you know long it takes for a credit score to 'recover' ?
Thanks for your advice

ACG

Read my signature! Its information only :P

I know how you feel, i spent ages looking for a house i could afford in an area i wanted to live in. 1 cropped up in 6 months of looking and there has been nothing else since (Im that sad i still look 6 months on).

TurkeyShoes

Haha, sorry...thanks for your thoughts! Oh, well if it makes you feel any better I have been looking for two years, I must be REALLY sad haha.....I think the rightmove logo is burning itself into my retinas. I hope you have some luck soon! It will hopefully be worth the wait

ACG

Sorry i didnt word that very well but i did get mine. I was glued to rightmove for months too.

TurkeyShoes

Ah, on reading that again that would make sense! Congratulations!

ACG

Cheers. We will be saying the same to you in a few months:D

robatwork

You mentioned saving up for fees.... some (all?) mortgage providers will let you add the fee onto the total amount so you don't have to pay it up front, so don't let that put you off.

Some of the best mortgages will have a fee.

Velvet_Glove

What is it with Nationwide and getting you signed up for all their products before deciding they won't give you a mortgage? We were 1 hour into our application meeting, having signed up for a Save To Buy account and credit card with them at our DIP meeting previously, advisor raving about our income and credit rating, and then on finding out I was on a temporary contract, then rejected us. Why couldn't they have just told us that when we went in for a DIP and then we wouldn't have wasted our time!

TurkeyShoes

Yes, robatwork, the Nationwide deal would have paid towards my solicitors fees and offered a free valuation too though! I probably didn't make that clear. The Skipton mortgage had lots of little extra fees, which couldn't be added to the mortgage, although the actual mortgage fee could.
Sorry to hear that you had the same problem Velvet Glove, I hope you manage to get something sorted out....It is annoying when they had all of the information, and say it all seems good, but wait until the last minute to tell you it's not! I am going to try with Santander next, and will let you know if I have any luck!