Nationwide affordability test - what happens?!

AgentM_2

Hi

This may be a frustrating repetition of a previous thread, but please be kind!

I have an affordability appointment so that I can take over part of the mortgage. My boyfriend owned the house we live in with a friend, and we're now taking him off the mortgage and putting me on in a transfer of deeds.

Next week I have an appointment with the bank and trying to make sure i'm fully prepared, because frankly, i'm terrified. I've done a lot of googling to prepare, but wanted to know if anyone has firsthand experience and can offer advice?

THANK YOU x

sleepyshell

Hi

We had to go for an affordability check on Saturday as we want to purchase a new build (currently have our mortgage with Nationwide).

I went prepared with their budget planner which they had mentioned on the phone, and also took bank statements, payslips, etc in case they were needed. I even took my spreadsheet where I've been tracking our spend this year as I would know exactly what DDs we have, etc and be prepared for any questions. They didn't look at anything though.

Basically they filled in the affordability checker tool that is on their website - See how much you can borrow
http://www.nationwide.co.uk/products/mortgages/our-mortgages/tools-and-calculators/how-much-could-you-borrow

I'd already done this at home, so in my opinion this meeting was a waste of both our time and theirs. Maybe they ask more questions for somebody new to mortgages though, but I'm sure it wouldn't be anything too scary.

She then advised us that once we had all the figures (were waiting for PX offer from Redrow) that we had to phone for a Decision in Principle. Once this was agreed then we would have a meeting with a mortgage advisor to complete the application.

I'm sure you'll be absolutely fine, and you can always fill in the tool yourself so you've got an idea of what the figure will come out at.

Good luck

AgentM_2

Thank you!!! That's really helpful. I've never been through this process so i'm really working myself up over it. xx

Thrugelmir

sleepyshell wrote: »

I'd already done this at home, so in my opinion this meeting was a waste of both our time and theirs.

From the lenders perspective they need to follow due process and satisfy themselves. As everybody's circumstances differ. Some people will sail through others won't. On the whole people are far too optimistic when it comes to financial matters. Hence the checks and balances.

sleepyshell

The process is a lot different to the last time I went through it too. But this meeting was just filling in the same as the online tool so quite simple. Good luck with your appointment!



Thrugelmir, I understand what you are saying, but when I have to travel 25 miles for somebody else to type details into the exact same tool that they have on the website it's a little frustrating. They should allow existing customers at the very least to be able to do this themselves in the online banking facility. The results would be recorded and then borrowers can get straight onto the DIP phone call. Just a thought.

MelissaW_2

Hi,

Hope you don't mind me jumping in here!

As some of you have had experience with the Nationwide affordability calculator and their questions regards to outgoings, could you give me some idea of what they expect for the bit marked:

Lastly, what about other regular monthly costs that you think we need to know about?

To my mind, that's all my monthly outgoings minus travel (so utilities, groceries, mobile phone, internet, everything!). Does that sound right, or am I adding too many things up? It seems to be the bit that determines how much they'll lend by quite some margin!

Help really appreciated from those who've been through it!

Thanks,

Mel

Jenniefour

Melissa,

Having seen posts on here from folks who have had the amount they thought they could borrow reduced. In some cases, drastically. I would make sure I included things like gym membership, car insurance, petrol etc. As I understand it at some point they will be going through your bank statements with fine toothcombe to see whether information about your spending is consistent with outgoings of any kind from bank accounts.

I did go through all that many, many years ago when bank managers themselves made decisions about mortgages - was asked to produce a detailed set of household accounts about my expenditure.

Maybe take a look yourself at a few months worth of bank statements. And bear in mind they will also be considering whether you can afford the amount applied for not only now but in future when interest rates will have risen.

sleepyshell

When I rang to make the appointment they asked me to fill in their budget planner and take with us. They didn't look at ours, but it's probably a useful tool to use as I think it pretty much covers all types of outgoings.

http://www.nationwide.co.uk/support/support-articles/manage-your-account/budget-planner

MelissaW_2

Hi,

Well I filled out the Nationwide budget planner, entered the result of my 'outgoings' in to the monthly commitments (I was generous) on their affordability calculator and they'll lend me.... £75k!

I'm pretty sure they can't be taking all those things into account for affordability, as my outgoings are tiny and the disposable it calculated for me would pay for a mortgage at 10% easy with plenty to spare?

Does anyone know if the affordability tests take into account deposits saved as a factor, or is it a completely separate thing?

Thanks,

Mel