Teacher Mortgage Problems - Nationwide

moggyfranny

We are applying for a mortgage with Nationwide but they've just come back and told my boyfriend that they won't accept his TLR3 (Teaching and Learning Responsibility 3) credit on our application as this TLR is only guaranteed for 2 years. This obviously causes a problem for us as it means that his income is brought down by £2,500 approx. The thing is, after that 2 years teachers get auto-payrises anyway so he will be earning at least that much in 2 years time.

They have also taken the wrong student loan amount £165 (vs. approx £110) from his paycheck as well due to an inflated pay packet because of backpay and they said something about querying our monthly travel expenditure as well.

All in all this brings down the amount they are willing to lend us to £187k which is approx £100k less than we need. We have a good deposit with 85% LTV on a property of £350k in London and both have good salaries. Is it worth fighting this with letters from employers/more payslips etc. or should we just cut our losses and try another lender?

amnblog

Are you not using a broker who can take you to another lender?

If you are £100,000 short of lending the gap is not going to be bridged by £2,500 extra income and £55 per month less outgoings.

ethank

TLR3 payments are time-limited and most lenders will only consider income where this is not subject to being removed at some point. NW are definitely one of these!

Agree with amnblog above, what are both of your annual incomes?

Thrugelmir

moggyfranny wrote: »

or should we just cut our losses and try another lender?

What income multiple are you seeking? i.e. how many times your annual salaries to borrow £287k.

kingstreet

Nationwide takes the highest student loan payment on the latest three payslips, even if that month was a one-off.

moggyfranny

The first woman we spoke to had it wrong! Apparently we are being offered 10k below the amount we were originally offered not £100k below (so £287k instead of the £297k we were originally offered). Despite TLR3 being time limited, he has been guaranteed by his employer that he will have this for 2 years. In addition as a teacher he will get a guaranteed approx £1.5-2k teacher pay rise in September and will again have a guaranteed one the following year which will take us up to this anyway in the period of the loan.
Do you think it's worth fighting?
We have been offered much more from Chelsea
Building society which we originally had a DIP from but decided to go with NW. We have gone direct.

Thrugelmir

Lenders can only base their decision on the information contained in the application and any facts relevant at the current time. Not on future events whatever they might be. As the one uncertainty in life is the future.

breakingbad

Plus, teachers' September pay increases are no longer automatic, they are performance-related, so neither your boyfriend nor the lender can depend on them...