Nationwide declined agreement in principle? :(

Lionel_Thinkbag

kingstreet wrote: »

Did you do a sole or joint application? Class yourself and child(ren) as dependent? £10k deposit? That may not be enough. What amounts did you submit for purchase price and mortgage amount?

Sole application. IIRC it asked about children dependents (1), and it asked if he was married (yes) Would I automatically be counted as a dependent in that case?

For purchase price and mortgage amount, we filled it in as if we wanted to borrow the max amount as indicated by their mortgage calculator, so 104k purchase price and 94k mortgage. We probably wouldn't end up borrowing that much as we're really looking to spend 80-85k on a fixer upper.

Will check the credit file now, thanks.

kingstreet

So, you put in a £104k purchase price and £94k mortgage?

That's above 90%.

It's possible the credit search was never done because you'd actually tried to apply "outside criteria."

If you'd submitted £104,000 with £93,600 mortgage, you may have been successful.

As a married couple, you should apply jointly and you should enter any child benefit and tax credits as income for you. You will be classed as a dependent, as well as any children, but that is the same if he makes a sole application, where the number of dependents should include you.

TBH you seem to need a broker.

Duskylady

Go to a broker. This is where they really pay off as they can help you focus on specific lenders. The broker we used could find us an additional 50k on a mortgage as opposed to just going to our bank.

Lionel_Thinkbag

kingstreet wrote: »

So, you put in a £104k purchase price and £94k mortgage?

That's above 90%.

It's possible the credit search was never done because you'd actually tried to apply "outside criteria."

If you'd submitted £104,000 with £93,600 mortgage, you may have been successful.


.

Oh my god, I can't believe we made such a basic mistake :rotfl:

This is what we get when we're sleep deprived and filling in forms at 1am! No wonder we we're refused. Well this is embarassing. Yeah, we definitely need a broker asap

Thanks again everyone.

Vixstar

Lionel_Thinkbag wrote: »

This is what we get when we're sleep deprived and filling in forms at 1am!

Also if you did the online DiP and submitted the forms around 1am you may have also suffered from the new online system Nationwide has which isn't available 24hrs a day as the credit checking bit is not available after 11pm so it just automatically declines you (and somehow leaves a footprint on your record too:mad:). I got hit with the same problem (and the fact that my current address wouldn't input properly but that's another story) and phoned Nationwide the next day. The call centre people only found out about this problem yesterday but they have been very helpful sorting everything out for me.

abankerbutnotafatcat

Will it be Nationwide's fault if they lend £94k to someone earning a basic salary of £20k and supporting a family from that if that person can't repay?

Lionel_Thinkbag

abankerbutnotafatcat wrote: »

Will it be Nationwide's fault if they lend £94k to someone earning a basic salary of £20k and supporting a family from that if that person can't repay?

Not sure what your getting at here. Where did anyone say anything was Nationwides fault? I was confused as to why the calculator said one thing and the AIP form said another (we now know why! lol)

We're currently paying £620 pcm in rent, with a mortgage we'd be paying 400-500 per month, and thats if we borrowed the full 94k, which is highly unlikely as we want a cheaper property to do up.

We used the calculator initially to work out how much we could borrow. It was my understanding that an AIP should be for the max amount available, otherwise you could be in a situation where for the sake of 1k more you lose out on a house.

Whats odd is that Barclays (who my husband works for) their calculator said we could borrow up to 124k! :eek: Never in a million years would we borrow that.

I guess I should point out that since Feburary we managed to save 7k of our 10k deposit, and we're still saving. We're not frivolous with money.

abankerbutnotafatcat

The point is more a general one rather than specific to you. Much of the current economic woes are put down to greedy banks lending more to people than they could afford to repay yet the responsibility of individuals not take on more debt than they can afford is discussed less.

Good luck to you if you budget hard in order to stretch yourself to make a decent life for yourself. If your OH gets a payrise and/or you go back to work you'll be comfortable but it will be a stretch in those early days (I've been there!) - you don't have to pay maintenance costs when you rent and you've said you're after a do-er upper.

Lionel_Thinkbag

Yeah, thats fair enough. We never thought it was going to be easy, but the way we see it if we have to live like monks for a few years so be it. Right now our daughter is only 10 months so we could probably sit tight and keep saving for a couple of years, but really a city centre isn't an idea place to raise a child.

As for doing things up, there are things we can live with - avacado bathroom suites and 70's wallpaper etc. As long as it's liveable and structurally sound. I'm not expecting to walk into a show home. People tend to make things more expensive than they have to be, especially if they insist on paying to have things done. Other than wiring and plumbing theres a lot you can do yourselves. I've lived on a building site for a good chunk of my childhood, I'm from a long line of fixer-uppers

furrylamp

Read the article about credit file on the MSE site.

You can actually get paid to view it, and definitely worth while, I had errors on mine, and all got removed quickly and easily.