Nationwide Lending Criteria

Rach_b_123

Hi,

Does anyone know if Nationwide strictly stick to 3.5 times your annual salary?

Just done a 'how much can I borrow?' calculator and the results equate to 3.5 times.

I wondered if we went via a broker there could be some influence to increase this or likewise if we went into a branch directly?

We really want to lend a little bit than 3.5 (about 3.78 times to be precise!). I understand we can approach other lenders (we are looking at Help to Buy phase 1), but their interest rate for Help to Buy phase 1 is only 2.5% and I just cant seem to find rates easily advertised for the other lenders of this scheme. We obviously want to pay the lowest interest rate possible and I have a sneaky feeling other rates will not be quite as low as Nationwide's.

Many thanks!

skinnylove

We managed to get 5x salary with a 20% deposit, through a broker.

Rach_b_123

skinnylove wrote: »

We managed to get 5x salary with a 20% deposit, through a broker.

That's reassuring. Thank you for answering.

Thrugelmir

Much depends on your personal circumstances. As there's no one size fits all. Affordability varies.

Could you withstand rates of 6%?

Rach_b_123

Hi - yes we could afford rates of 6% and even up to 8% based on our current income.

TBagpuss

I filled in their online 'how much can i borrow' and it came up with exactly 3.5x income. When I got my AIP I asked whether I it would be possible to have a bit more (3.7x) and that was not a problem.

When I filled in the formal application in the branch (at the point where they look at affordability etc) the figure which came up was 5x income.

I'm only actually applying for 3.5x, but it would seem that (subject to deposit and affordabiliry etc) that is not the limit.

Rach_b_123

Fantastic - thank you all for replies.

Good to know borrowing more than 3.5 times salary is a possibility for some.

Fingers crossed we are able to when the time comes...

kingstreet

If you try to rely on an income multiple, you'll come unstuck.

If you buy on Help To Buy - Equity Loan, you have to take into account the equity loan payments at 3% of the loan amount, as is shared ownership rent.

If you have childcare costs, they will be deducted, as will maintenance payments, credit costs etc.

Use the affordability calculator and ensure you are totally honest, as they will scrutinise your bank statements for outgoings;-

http://www.nationwide-intermediary.co.uk/calculators/aff_calc