Nationwide offer conditions

Lisbong

Hi,

In branch during our mortgage application we had discussed with the mortgage advisor that we planned to pay off my wifes credit card balance of approx £800 and £1500 off my card which has a balance of approx £3200.

The offer letter we've had today in the post says the following:

"This offer is issued on the understanding that the following commitments will be repaid on or before completion of this loan:

Credit card with an approximate balance of £800
Credit card with an approximate balance of £1500"

So, it's worded differently than we agreed in branch as the balance on the card is £3200 not £1500. I had agreed to reduce the balance on the card by £1500, not pay it off completely and can't really afford to that

Can I ask who checks this has been paid, is it the solicitor or Nationwide themselves?

If I pay off the £1500 as planned and reduce the balance to £1700 will that be ok?

Thanks for any advice.

Lisbong

Anyone got any thoughts on this?

I tried to speak to solicitor today but not heard back.

Thanks

Thrugelmir

Have you spoken to the NW for clarification?

ML420cdi

These conditions lenders are making are nonsensical. You don't have to close the accounts and can run up as much debt as you want once you have the mortgage. That you can momentarily reduce your balance for a day prior to getting the mortgage means what?

sleepymans

Recent experience of Nationwide lending criteria suggests they have totally lost the plot.
This is after me being a 30 year loyal customer (with a
mortgage, isa, savings and current accounts and NW credit card account holder.)
I will be closing all my accounts as soon as possible.


Their loss.

ethank

They want to make sure it is affordable. ML420cdi makes a good point above. However if a borrower did this to an unaffordable level they may be unable to remortgage in the future.

amnblog

This is standard wording produced by their computer.

They don't have the facility to print '£1,500 from a total of £.....'

NWBS leave it to your solicitor to ensure conditions are adhered to.

You should speak to them about this.

System

Nationwide has indeed lost the plot. I have a FlexDirect account and applied for a remortgage - £73,000 on a property worth £175,000. I earn 45K as a teacher and have 8 years left on my current mortgage term with another lender. All I wanted to do was remortgage on the same terms. I have a squeaky clean credit reference.

Nationwide grilled me on my pension, even though I told them I have no intention of retiring while the mortgage was outstanding (I'm 57). They went into my finances in fair detail and then told me that in terms of affordability they could lend me around £35K

Went to HSBC and they agreed my mortgage in principle, then went on to make a firm offer.

I too will be closing my Nationwide accounts.

amnblog

This is about lenders considering pension projections only when calculating affordability for mortgages going past state retirement age.

The older borrower is going to hit these kind of problems again and again until it gets politically unpalatable and the rules change.

Everyone tells us we have to work longer as we cannot afford to retire, but then lenders wont believe that we will/can work beyond state retirement age.