Nationwide have refused my mortgage

hms125

I currently have a mortgage with Nationwide but are moving and downsizing, I therefore intend halving my mortgage - I have never defaulted on a payment on anything in my life yet today I have been informed Head Office have declined my mortgage. I have telephoned to find out why yet because Head Office made the decision only Head Office can tell me why and they are now closed. My current mortgage is with Nationwide I must add!!
Anyone any ideas why this might be? I've checked Noddle and it says 5/5 with everything up to date - have paid my £2 for Experian but have to wait for the password to be sent through the post so can't check that - I believe this is who Nationwide use.
I'm totally shellshocked and losing the plot her, I'm only about a fortnight away from completion so am royally stuffed now.
Ideas gratefully appreciated!!!:mad:

Thrugelmir

Post your query on the mortgages board. One of the resident brokers may have an insight.

sabretoothtigger

Could it not be the new house not you, thats what changed right

hms125

The new house is being purchased for 175,000 but I only want a 40,000 mortgage - I wouldn't have thought there was anything to cause an issue there - guaranteed to get their money with that much equity?

The_Boss

How old are you if you don't mind me asking?

izools

Your solicitor shouldn't have agreed a completion date without an official offer of mortgage from your lender.

It might not be anything financial that causes a lender to decline a mortgage application, it might be due to the property being unsuitable, for example due to its construction or something in the deeds that they aren't prepared to lend against.

You'll of course get more information when you call them back during office hours.

Good luck!

sabretoothtigger

Might need a bridging loan, at least 40k is not a big ask hopefully.

Nationwide itself is under a change. They are being squeezed on lending, Basel 3 rules or similar type regulation stuff. They just told me on 1 current account this can never have an overdraft, last week it there just fine

thegfb

Sorry if this sounds dumb, but if you are downsizing and halving your mortgage sorry you aren't actually asking to borrow more??

happycamel_2

No but the OP's lender has a charge against property 1 that needs to be repaid on sale. It is up to the lender if they will lend against property 2. Sometimes they will and will also allow the same terms and conditions as the loan against property 1; this is called porting. Sometimes they won't this will usually be because the property or the borrower no longer meet their lending criteria (could be age, income, other debts, type of property construction or any number of things).

hms125

I had agreed to complete and move into temporary accommodation so I didn't lose my sale when the first house purchase fell through so that's not really an issue. I'm not asking to borrow more and yes I'm porting - but it still gets paid off and you start again. I have no idea why they've now refused it - my Financial Advisor could not get them to tell her anything, then when I rang Head Office were closed (5.10pm). I'm 45 and have had a mortgage on my own for the last 10 years with no problems whatsover and have never defaulted on a payment of any kind ever Really am at a loss.

Thrugelmir

hms125 wrote: »

I'm not asking to borrow more and yes I'm porting

If you are halving your mortgage. Then it may well be disadvantageous for the NW to agree to the port. Particularly if you are on the 2% above base SVR rate. In effect they'll happily allow you to take your business elsewhere.