Nationwide lending criteria?

sleepymans

We are looking to port our existing Nationwide mortgage to another house.
Initial enquiry with NW by phone I was told that if applicants are within 10 years of state pension age, then their estimated state pension is the income on which affordability is calculated.


I am flabbergasted! With OH likely to work another 5 years on an average salary and me in receipt of a pretty decent a final salary pension, why would they use the approx. 6kper annum each of state pension as the income level???? Especially as neither of us are in receipt of our state pension!


Do we need to see a broker instead?

kingstreet

Here's the criteria from the intermediary site;-

Lending into Retirement

The retirement age of an applicant will be based on the lower of your client's stated retirement age, or the state pension age relevant to your client. The maximum retirement age is 70. The mortgage term must not extend beyond the 75th Birthday of the eldest applicant.

Where the mortgage term extends into retirement, the following criteria apply

Retirement is less than 10 years away

Details of both current income and anticipated retirement income must be provided
The lower of the current income or anticipated retirement income is used for affordability purposes
Retirement is 10 years or more away

Current income is used for affordability purposes
Evidence of pension contributions must be provided (i.e. pension deductions on your client's payslip, or payments to a pension provider evidenced via bank statements)

http://www.nationwide-intermediary.co.uk/lendingcriteria/general/income

A broker would be a good source of help in working out if this proposition is possible with Nationwide, or if you should look at other lender options.

ACG

Theyre the people to ask that question of.

But if you speak to a broker im sure assuming everything does stack up as you say then it should be possible to place without too many issues.