Nationwide declined AIP

Thrugelmir

ViolaLass wrote: »

Others may be able to answer this - isn't saving v paying off debt rather a moot point since the lender will consider the overall position?

Totally. A personal balance sheet is a net position. Too often people treat savings and debt as sitting in different pots.

Common sense dictates that debt should be repaid first as well.

Thrugelmir

garmcqui wrote: »

We really don't want to lose this house though Thrugelmir.

I am confident that we will be able to continue paying off our debts after the purchase, as the mortgage will be less that we pay in rent. So if saving some cash will increase our chances more than repaying debt, I would prefer to do so.

Thanks

As ViolaLass has intimated. Not the way lenders view the risk. You'll need to fit their lending criteria not a question of the other way round. A lenders perspective is totally different. As based on a myriad of statistical information which enables them to profile a classify a borrower into a various categories.

With the future far from certain. Lenders are being coerced into improving their balance sheets.

Voyager2002

garmcqui wrote: »

Appreciate that, thanks.


It's just a bit gutting that our efforts to try and reduce our debt may be the very thing that prevents us owning a house anytime soon, feels like a bit of a kick in the teeth.

No. I think the level of debt is the problem, and having even more debt along with savings would make matters even worse.

denise38

We are hopefully moving house and I am dreading asking Nationwide to remortgage. We have been with them for 9 years they have our mortgage and our current account . We have excellent credit history have £25 k locked away in savings my kids each have £10 k in joint names with me all in Nationwide . Recently we spur of the moment decided to buy a car and asked for £7 k personal loan as we knew we would never replace any money taken out of savings . We do have £3500 on 0 % credit card that will be paid of with other savings when 0 % runs out. Surprisingly they turned us down. We have £2500 paid into our account every month and are very rarely overdrawn. I spoke to branch and they told me to appeal the decision. I called them and said I was gobsmacked and they said we obviously didnt meet their lending criteria ,I emailed them and put down all relevant information including savings etc and said we were obviously too good a customer that we had obviously too many products with them and seeing as we were such a bad risk we would take our business elsewhere . Subsequently got loan from our other bank where my occupational pension is paid into within 5 minutes . Low and behold a week later I got a call from them to say our loan had been approved. i took great pleasure in informing them that I had taken my business elsewhere and the reasons why. I am beginning to look about locally with other banks etc as I do feel we are too good a customer and they really annoyed me. They wouldnt divulge why we had failed I knew it wasnt because of anything adverse on our credit history as I do check them periodically and all was good. They kept saying it was to do with lending criteria.

Thrugelmir

denise38 wrote: »

Subsequently got loan from our other bank where my occupational pension is paid into within 5 minutes .

Pretty remarkable to remortgage within 5 minutes.

I note the use of other bank so playing your loyalty card wasn't strictly true. People only moan when they don't get what they want. Something business hears all the time.

breakingbad

well I have explained in great detail to the broker why we aren't saving anything, and have closed two unused credit card accounts as they said they were worried about the available credit on those (I wasn't sure whether or not to close them, but it appears I should have).

So who knows what will happen with the appeal... Looking at a plan B with another lender anyway....

Mrstickle

You have ££££ of debt. You have no savings.
And you think you're in a position to get a mortgage?
You seem to think you have a right to it, when you need to knuckle down and save like the rest of us have had to.
We bought a 165 k house and as well as the deposit, it also cost 5k ish in stamp duty, solicitor fees etc, if you've no savings, are you going to put that on your credit card too?!

breakingbad

No, our parents kindly gifted £20k to us in order that we could get a house. This was to cover deposit, fees, stamp duty etc. I never once said we had a right to a mortgage, but I see stories on here all the time with people in much worse situations than us getting mortgages.

So you're saying nobody with debt ever gets a mortgage? Because what is the point on having savings if you also have debt, especially as the banks treat them in the same way (ie: having £10k of savings and £8k debt is the same as having £2k savings and no debt).

Mrstickle

You are missing the point: you have saved nothing towards it yourself. And still have debt.

breakingbad

I'm not missing the point - I'm just saying surely it's impossible (and pointless) to save towards a deposit if you have debt, plus I'm sure people get mortgages all the time with debt.