Should we go with Nationwide? Is their lending criteria stricter than others?

JoeyEmma

My husband and I are looking at moving house. We currently are with Nationwide and can port our mortgage with us. As it is on their SVR of 2% above base rate for the rest of the term we want to do this as it makes a huge difference in repayments.

To buy our new house we need to take out another mortgage for £133,000 in addition to this. It will be an 85% LTV (the house is £300k) so we would have a mortgage of £265 with them. My income is £30,000 DH earns £51,000. We don't have any loans / car payments etc.

We are wanting thinking of taking the additional portion of the mortgage out with Nationwide, however, we are hearing that they are becoming increasingly strict with lending. We have gone through an incomings and outgoings spreadsheet, and have worked out that we can afford the mortgage even if interest rates increase by 4%.

I am slightly anxious that they might turn us down though. Has anybody got any experience with Nationwide lately? Should we go with them or should we contact a broker?

ACG

Have you checked nationwide website, they will have an affordability calculator.

JoeyEmma

Yep, have gone through their affordability calculator. The women of mumsnet are talking about it and a few are saying they have gone through the affordability calculator, got decisions in principles and still had the amount they would be offered reduced. I can't link to it as it has far too many swear words in the thread title!

ACG

I never trust a calculator 100% but if you put in the right info, you get the right result. If you miss something off (intentionally or not) then it can come back to bite you at the last minute.

If your circumstances are out of the ordinary then its best to go via a broker - they can run your circumstances by an underwriter before ever making an application.

JoeyEmma

It's posts like Blueberries below that make me anxious. I know they are self employed and DH and I are both in the public sector, however they went through the affordability calculator and got a decision in principle too.

JoeyEmma

ACG- we are both permanently employed and have been in continuous employment for 10+ years. We have no CC debts, loans, hire purchase etc. we run one car which is owned outright. I've factored on cost of car and home insurance for the new address too. We do pay for Childcare but it's £450 a month and a large portion of it is paid in Childcare vouchers (before tax) which we both claim. DH says don't stress but I'm pooing it and anxious we will get turned down.

themull1

I got a mortgage with Nationwide for £80,000 when i had to buy my ex husband out. i've just put exactly the same details in now pretending it was three years ago, and they will lend me £42,000!!! Maybe see a broker first rather than put all your eggs in one basket?

JoeyEmma

The calculator does say they will lend us £80k more than we actually want to at the moment, which is a good sign.

themull1

JoeyEmma wrote: »

The calculator does say they will lend us £80k more than we actually want to at the moment, which is a good sign.

Thats promising!! Nationwide were really good with me at the time when other lenders would have turned their backs. Good luck, i hope everything goes well for you!!

Thrugelmir

JoeyEmma wrote: »

I am slightly anxious that they might turn us down though. Has anybody got any experience with Nationwide lately? Should we go with them or should we contact a broker?

Any lender will underwrite you as individual application. If you meet their criteria then you'll be ok.

Personally I would be more concerned with a £265k debt around my neck. As any increase in interest rates will have a significant impact.

JoeyEmma

Yep, it's a lot of money, but it's what a three bed terrace costs where we are moving to and it's taken 12 months to find it. It's not an extravagant house by any means. Houses are expensive things. We have looked at budgets with a 4% interest rate rise and can still afford it. I'm stopping part time working at the end of the year took which ups my salary another £20K too although all calculations are based on my current earnings.