Declined Nationwide mortgage help

Giggle5

Hi,

We have today been refused a mortage from Nationwide (after the best part of a month dealing with their pretty poor advisor in our area) We have are first time buyers with no outstading debt and a 50% deposit. The underwriters have refused for the following reasons:- I defaulted on a nationwide loan a few years ago after being made redundant (loan now paid off) My husband defaulted on a credit card payment a year ago (credit card balance now nil) and our deposit is gifted therefore we are showing no savings. The advisor had been so positive about our application so it came as quite a shock that its been declined. Can anyone offer any advice as to what our next move should be? Does this mean no one will lend? We can't risk being turned down time and time again if our credit rating is showing we are risks (even though it is excellent on Experian)

Thanks in advance

_Andy_

Doesn't seem much of a shock - look at it from their point of view - you couldn't keep up payments on a smaller amount of money so obviously you present higher risk when they lend you a lot more.

Speak to a mortgage broker who may be able to find a suitable alternative lender.

GMS

Get copies of your credit files from Experian, Equifax and Call Credit. Get them to a proper broker, not a lender 'adviser'

By defaulted do you mean missed payments or cancelled agreements?

Giggle5

2 missed payments unfortunately, we'll take copies to a broker and see if they can help. I just thought a couple of missed payments in the past wouldn't be a huge deal in the grand scheme of things. Our mortgage would be about £560 and we have a monthly income of over £2000. I don't understand their point about not having savings either? Don't the majority of first time buyers have their deposits gifted?

GMS

No the majority of first time buyers dont have gifted deposits. Many do bit not the majority.

Who is gifting yours?

chanz4

Giggle5 wrote: »

2 missed payments unfortunately, we'll take copies to a broker and see if they can help. I just thought a couple of missed payments in the past wouldn't be a huge deal in the grand scheme of things. Our mortgage would be about £560 and we have a monthly income of over £2000. I don't understand their point about not having savings either? Don't the majority of first time buyers have their deposits gifted?

no its called hard saving

xyellowx

or having it easy

Thrugelmir

Giggle5 wrote: »

I don't understand their point about not having savings either?

Savings demonstrates an ability to manage personal finances well. A mortgage typically lasts 300 months (25 years). So requires month in month out regular on time payments. An underwriter looking at your credit history is seeing defaults, i.e. when times got tough you had no savings to tide you over. Therefore considers it likely that you will default on the mortgage at some point in the future. This is based on statistical data rather you personally.

_Andy_

"just thought a couple of missed payments in the past wouldn't be a huge deal in the grand scheme of things."

You defaulted, not 'a couple of missed payments' - it's not a minor matter. And as I've said, you can see why they don't want to lend to you.

Giggle5

So in your opinions would there be no lenders willing to lend to us or is it worth looking elsewhere?

carslet

As one of the other posters said, try a mortgage broker, they will find you an alternative lender who would lend to 'riskier' people like yourself. you may not think you are, and you obviously can afford to pay, but they look at more of how you have managed money rather than how much you earn,