Devastated

STOTTYCAKE_2

Thanks for that

homer_j_3

If an underwriter has declined the case due to case falling outside the risk that they are prepared to take then I dont think that there is much distance in moving forward with the nationwide. I am not sure if NW take guarantors but its not something I do often.

I would say also that its always good to have an emergency pot of money and it is often recommended that you should try and have a minimum of 3 months salary accessible but not many people I deal with do so I would say unless the interest being achieved on their savings seriously outweighs the interest being paid through their debts then yes they should look to reduce the debts as much as possible.

If your sister goes to see a broker they will quite easily be able to say what is the best route forward but as you have not supplied details of income etc it is not possible to say much more.

STOTTYCAKE_2

They have enough income just careless with money.

STOTTYCAKE_2

Could they go to another lender?

KTF

Nationwide mortgages are normally portable. Cant they transfer their existing one then take out a second mortgage (non-Nationwide) for the difference?

STOTTYCAKE_2

It is a portable mortgage but would they be able to get the difference with another mortgage lender?

KTF

She should go and see a broker tomorrow and get them to run through some quotes. They will be able to advise based on her circumstances.

*EssEncE*

Nationwide are not flexible when it comes to things such as missed payment, be it satisfied or not.

It looks like Nationwide have left her no option but to switch lenders or wait >3 months.

I would be interested to know what their existing property is valued at approx. You say their existing mortgage is £115k (£119k with penalty), what equity could they generate from sale, in which to use as deposit for new purchase?

I cant see it been a problem to find a lender. But she will have to accept she won't have access to the full market due to their current financial circumstances, especially bearing in mind the missed payment. But their income is on their side, which is good.

STOTTYCAKE_2

Sorry EssEncE* that I didn't see this post when I wrote another thread. This has been really helpful.

*EssEncE*

It's okay I appreciate your concern, hence the posts asking for advice.

So, lets clarify matters.

Your sister and her husband have sold their existng property for £132k.

When you say 'sold' do you mean:

1. They have accepted an offer and its currently with the solicitors awaiting exchange of contracts / completion?
2. Sold as in "sold", done, dusted gone. They no longer own and occupy the property?

It's important you clarify the above...

Moving on, below is an extract from Nationwide's website regarding Guarantor's. So to answer your question, Nationwide do allow Guarantors. But do understand, the underwriter's at Nationwide will judge each case on it's own merits. The underwriters have already declined once due to the missed payments, so that will be fresh in their mind. Hence if they *could* accept your father, they still might say no due to the missed payments.

"Borrowing with Guarantors
Guarantor must be a close family member and be able to afford the whole mortgage as well as their own existing commitments. This means that the guarantor will be assessed separately from the applicant in terms of our affordability criteria. The guarantor's own income (less existing credit commitments) must be sufficient to support the total mortgage balance requested plus any outstanding mortgage balances they may already have.

The guarantor must receive independent legal advice from a different solicitor to the one chosen by the applicant(s) and the guarantor will be responsible for all costs incurred in this respect.

85% maximum LTV"

It's difficult for me to help really, all I can say is get in contact with Nationwide tomorrow. Doesn't matter if your Dad's away, your sister can still call. She will just need some basic information on your Dad to pass to Nationwide to help them make an informed decision. Information such as age/occupation/salary/financial commitments etc. especially his exiting mortgage, so the amount he owes, term left and so on...

STOTTYCAKE_2

Thanks again for all the help received, I'm just so grateful to be able to tell my sis there is light at the end of the tunnel.