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Nationwide mortgage declined - level of unsecured debt
Am1203
Posts: 3 Newbie
Hi everyone
Just had a mortgage application to Nationwide declined due to the level of unsecured debt. When we initially applied the case was referred and it took 3 weeks to finally decline the application.
I have read that Nationwide underwriters are quite strict, so I wonder if it is game over or if there is a chance with another lender?
Joint income £75k
Mortgage £183,000. (Ltv 75%)
Loan £16,000 (£280pm)
CC balance £9000 on 0%. Although I have the cash to repay £5k if necessary. No missed or adverse.
Both FTBs using help to buy.
Deposit is £12,500 from savings and part gift and 20% help to buy equity loan.
Initially the broker said the level of debt was fine (based on Nationwide affordability model) but was then declined by lender.
Quite frustrating as it is difficult to judge in advance whether the case will be accepted and just not sure whether to pull out now or try again elsewhere.
Just had a mortgage application to Nationwide declined due to the level of unsecured debt. When we initially applied the case was referred and it took 3 weeks to finally decline the application.
I have read that Nationwide underwriters are quite strict, so I wonder if it is game over or if there is a chance with another lender?
Joint income £75k
Mortgage £183,000. (Ltv 75%)
Loan £16,000 (£280pm)
CC balance £9000 on 0%. Although I have the cash to repay £5k if necessary. No missed or adverse.
Both FTBs using help to buy.
Deposit is £12,500 from savings and part gift and 20% help to buy equity loan.
Initially the broker said the level of debt was fine (based on Nationwide affordability model) but was then declined by lender.
Quite frustrating as it is difficult to judge in advance whether the case will be accepted and just not sure whether to pull out now or try again elsewhere.
0
Comments
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Nationwide are not the most flexible lender and certainly are one of the most anti unsecured debt.
Do not apply at random, would have a chat with a broker and maybe not the developer one as in my opinion they place to lenders based upon previous and assumed valuation, rather than mortgage/client specifics.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Has little to do with NW's underwriters being strict. More a question as to the risk you pose as borrowers. Given the poor state of your personal finances. Despite an above average household income.
A few New Years resolutions wouldn't go amiss.0 -
Which mortgage lenders are more "lenient" when dealing with unsecured debt?0
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I'm guessing the main issue is that your unsecured debt is twice the amount you're putting down, so it looks a lot like a borrowed deposit from the right angle?
As Dave Ham says, probably one for a broker, and one without 'split loyalties'....0
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