Nationwide mortgage criteria post MMR

CB115

Hi can anyone help me, my husband and I have been with Nationwide as customers for 28 years and have mortgage and flex account with them. We had an offer at solicitors for £95000 on a bungalow valued at £227500 on 16th April 2014 pre MMR but the property we were buying was taken off sale. We found another bungalow and contacted Nationwide and were informed new application needed. We asked what could we borrow as extending up into roof was an option so agreed on £109500 with a property value of £229500. Decision in principal was agreed and 3 hour telephone interview with their mortgage advisor done a week later and all okay we paid £99 fee and £420 Homebuyer survey.
Nationwide called me asking why my wages were not showing on our flex statement and I explained that I was paid in cash I then had to tell them when I paid the cash into acc. I only banked 76.5% of wage over 3 months as we paid plumbers and tradesmen while getting our property ready for marking and thought no more of phone call.
I called Nationwide for what I thought was quick update to be told they have an 80% criteria for cash paid employees this was the first time we knew of this. They would only be prepared to lend £8900 which was £100000 short!! They made my income of £12000 ZERO so we did not meet affordability criteria. I was forced to complain while crying and since then they have closed our case.
We think we should have been asked about wage if it was so important at first phone call. Our buyers want to exchange very soon and we aren't even allowed to port our £74300 mortgage. We owe no money to loans or cc's and only have this mortgage. My husbands income is £14500.
Sorry it's so long we are desperate as we have a non dependant son with MD who can't manage stairs much longer so need to move.
Thanks

ACG

I dont mean to be rude but are you asking a question or just letting off steam?

ACG

Sorry, ignore that. By the time I got to the end I forgot the very first line.

My advice would be to speak to a broker. I have never come across that before re cash wages, usually lenders just ask for wage slips or a letter from the employer.

A broker will be able to sort this out im sure. But your probably not going to be exchanging for a good month or so.

CB115

Hi ACG thanks for replying to be honest it was a bit of both. They had wage slip. I called FCA today and they said it was Nationwides discretion and not FCA rule. Spoke to independent broker who called underwriters and no shifting even offered p60 and letter from my employer.
The main reason for posting was to see if anyone else had had problem about cash. Has anyone had their wage reduced to nil if they bank less than 80% of wage, we think it is very harsh.
Thanks

ACG

It is down to nationwide not the FCA.

To be honest, personally I can see their point of view. Whilst your honest, other people are not and this is open to abuse. Im not a fan of doing mortgages for people who get paid cash - I have turned down business where I have not been 100% they were legit where this has happened.

I think you just need to resign yourself to the fact a new lender is needed. Also Nationwides affordability is about to get stricter so there really is no point proceeding with this if theyre not going to do it now.

CB115

Thanks we had thought the same. Thought that as long standing customers it might mean something but things have changed. We've wasted 3 weeks so time to move on. Will carry on with complaint though.