Being slowly tortured by Nationwide!!

brightsprite

Hi,

I'm having a nightmare of epic proportions with Nationwide.

My husband and I applied for a mortgage in the beginning of June with Nationwide and got a decision in principle for exactly the amount we needed.

After putting the formal offer in we have jumped through various hoops and continue to do so - believe me water torture has nothing on this company!

I have had to have a reference and two additional letters from my employer confirming a standby allowance. They have six months of payslips and bank statements.

We had a stumbling block with both mine and my husbands student loan payments - in the month of May we were both given extra money over and above our wages because he worked a bank holiday to help work out and I did more overtime. Nationwide put the figures we paid for that month for student loan down for the whole year and refused to budge. Meaning that they were only prepared to lend us 2.5k less than we needed.

We have managed to save the extra while going back and forth trying to get the student loan issue sorted so backed down and said we would like to accept the reduced amount and put the rest in ourselves.

Alongside this we are renting out our apartment (current home) and Nationwide have given the DIP based on this being self sufficient and gave us no conditions associated with this. We have tenants moving in our current home in August and they have signed a tenancy agreement.

Since we told them we wanted to take the lower offer they have come back saying they want to see the first months rent going in. We have told them that it's difficult when we are currently living in the property! and after explaining our situation with the tenants we have managed to get them to pay the first months rent in advance and bank statement was sent.

We thought we had done everything possible - but today they have come back saying they want to have the tenant in the property for the first month before they give us an offer!!

At no point in the last two months have they mentioned this, it wasn't a condition of the DIP and nowhere in any of their literature does it say this.

They are torturing us quite frankly by dangling an offer in front of our faces and moving the goalposts constantly.

Where do we turn? We are too late in the process to start again and of course we have paid the fees already to Nationwide. We could move to a family members house if we lost the offer but can't push the vendors to the end of Sept.

Our mortgage broker is livid and says he has never known anything like it! Something must be amiss somewhere.

We are two honest hardworking people who are trying to move to give our young daughter a garden to play in. We save £1000 every month and can more than afford both mortgages if we became really stuck.

I feel like my head is going to pop off with the stress of it all! We feel so helpless :mad::mad::mad::mad::mad::(:(:(:(:(

haras_nosirrah

oh dear

did you go direct to nationwide or is this broker error?

Nationwide and let to buy is always one to avoid. Unless the property is already being let out they will want to see you can afford both mortgages incase you don't get a tenant.

Time to cut your losses with nationwide or move out and let the tenant move in (wouldn't recommend) as Nationwide will not budge


copied from nationwide criteria

Clients with Additional Properties
Where your client will own more than one property on completion of their new loan with Nationwide the maximum LTV is 85%. Purchase applications for these clients should be keyed as a Second Property to ensure the correct LTV limit is applied.

For information about products please see our products, loan size and maximum LTV criteria.If your client owns more than one property, we require all addresses and mortgage details.

Let properties are treated as self-financing where the rent received is at least 125% of the current mortgage payments.
Where let properties are mortgage free a percentage of the total monthly rent received will be treated as income.
Rent must have been received for a minimum of one month at the point the application was submitted and we will require up to date bank statements to confirm this.
A copy of the signed tenancy agreement is required.

kingstreet

Your broker placed this with the wrong lender. Natiowide criteria for second properties is clear and unambiguous where the existing property is to be let;-

Clients with Additional Properties

Where your client will own more than one property on completion of their new loan with Nationwide the maximum LTV is 85%. Purchase applications for these clients should be keyed as a Second Property to ensure the correct LTV limit is applied.

Let properties are treated as self-financing where the rent received is at least 125% of the current mortgage payments.

Where let properties are mortgage free a percentage of the total monthly rent received will be treated as income.

Rent must have been received for a minimum of one month at the point the application was submitted and we will require up to date bank statements to confirm this.

A copy of the signed tenancy agreement is required.

http://www.nationwide-intermediary.co.uk/lendingcriteria/general/income#additional

The issue related to student loan payments being annualised on the highest payment shown on your payslips is also know to most brokers.

brightsprite

Oh dear indeed!

Thanks - can you believe we are using a broker?!

We're waiting on the response from Nationwide tomorrow so I will be interested in what they say.

I am absolutely dumbfounded that it's been allowed to get this far down the line before these issues have been brought up. It should have been laid on the table at DIP stage - we wouldn't have gone with Nationwide if we had know it would be an issue.

I wonder if they are not classing our current home as self financing given that we both earn good wages and they are not lending us much.

Thanks

Dave_Ham

Poor, poor show. As explained, this should not have been a Nationwide application as they are specific with their criteria on this one.

Anyway, you know this now. Without full sight of your case, it is difficult what to suggest.

Not sure I would entrust the same broker, but depending upon geographic location; there are lenders out there that can potentially get you a mortgage offer in days not weeks. Certainly 10 working days is achievable when placed with an appropriate lender.

Other lenders do not operate the same let to buy criteria, nor student loan principles.

I assume you have consent to let or a buy to let mortgage sorted?

Voyager2002

On the basis of post #3 above, it seems clear that your broker was at fault in choosing to send you to Nationwide and in failing to make you aware of their lending policies. You could reasonably expect hiim/her to meet the costs you have incurred as a result of this error: certainly the non-refundable fees paid to Nationwide, perhaps the reasonable extra costs of moving into temporary accommodation until another mortgage can be put in place. Subject to that, I think I would still give the broker the opportunity to find you a satisfactory mortgage deal, but would check out any suggestions on boards like this before tying yourself in!

Was there any reason why you did not simply sell your old home before moving into your new one? That is what most people do in your situation, and would of course have made everything so much more simple...

amnblog

Rent must have been received for a minimum of one month at the point the application was submitted and we will require up to date bank statements to confirm this.

As KS says this is the key point if you are keeping your current property and putting an application in with Nationwide.

You need a plan B with an alternate lender.

A number of the other major lenders have no issue with the renting the property out as you move into the new one (assuming the rent/mortgage is self funding based on their calculations - typically rent = +125% of mortgage payment).