Mortgage DIP referred on save to buy with Nationwide

lookingtobuy

My husband and I have a save to buy account and have saved up our 5% deposit so went to the bank on Saturday to get our DIP for 95% LTV but its been referred to the underwriters to make a decision.

A bit about us....

Joint income £65k a year
Debts £150 a month (interest free sofa and small loan)
Nothing negative on credit report

The reason we have been told it was referred was due to the amount and frequency of credit checks we have had.

I have one check from feb as was looking to re-finance a loan but in the end my parents gave me the money to pay my existing loan off so I didn't take out finance.

We had 4 checks last year which were for credit cards of which we took two out, reason was to pay balances of our wedding, used credit cards to protect ourselves in making payments then paid off amounts in full every month and closed these accounts in dec, so it's not like we have loads of credit. There are also lots of checks that are for things like car insurance etc but I read that they can't see these.

We have never been overdrawn in our joint account with nationwide and have been saving £2-£2.5k every month in our save to buy to get our 5% deposit.

I was wondering whether we are now likely to get a decline with Nationwide on this basis. They said on affordability we could borrow £309k but we only want £237,500 max so well within affordability.

I have read underwriting for 95% is strict but this seems very strict

bigadaj

Wait until you get an answer,money nationwide can know.

After the disaster that the banks have been for the last decade then conservatism isnt a bad thing, and you do want someone to give you a quarter of a million quid. As you are putting up a fiver for every hundred quid borrowed then I can see why they would be cautious, simple answer if there is a rejection is save more or buy a cheaper property.

Thrugelmir

lookingtobuy wrote: »

They said on affordability we could borrow £309k but we only want £237,500 max so well within affordability.

Depends upon how you view affordability. Spend today pay tomorrow,is all very well until financial misfortune strikes. Will you sleep easy with a mortgage of that size? What if interest rates were to rise 1, 2 3%......

lookingtobuy

Thrugelmir wrote: »

Depends upon how you view affordability. Spend today pay tomorrow,is all very well until financial misfortune strikes. Will you sleep easy with a mortgage of that size? What if interest rates were to rise 1, 2 3%......

Well clearly I am not doing this, hence why I wouldn't dream of borrowing anywhere near the max!

After all mortgage, bills, living costs etc I will still have over £1400 of disposable income per month, hardly living on the breadline in my opinion! and I know what my costs are likely to be as I have rented a house of the same size.

Anyhow, this wasn't my question.

Rosy_Apple

Hi,

I was wondering how you got on?

We are just about to apply for a 95% save to buy with nationwide- so am looking to see how people have got on.

Thanks.