Sensible Mortgage Lending

Rob_Williams

Hi new to this forum as I'm really confused and need some answers,

I applied for a Mortgage today and the decision was deferred based on Nationwide wanting to see payslips and Bank Statements,

The confusing part is that they offered £230,000 (max) over 25 years but i wanted not even half of that amount and they offered to lend me and wife £104,500 over 7 years????

We could probably afford a much bigger house but we are happy with the one we are renting (that is for sale) so us being sensible and only wanting a smaller Mortgage has affected us?

Sensible lending eh?

Nationwide seem to of contradicted themselves I think.

Thanks in advance Rob:)

Sarahspangles

What they are saying is that they think since you are borrowing less that you could pay it off more quickly. This would certainly save you money in interest in the long run. You don't have to agree with them! You can say that you would rather have more disposable income for holidays or investments, and spread it over longer. But be careful about implying you might have more commitments as that may reduce what they are prepared to lend.

TrickyDicky101

Is it NW that has imposed a 7 year term or you who have requested it? How old are both of you?

Rob_Williams

TrickyDicky101 wrote: »

Is it NW that has imposed a 7 year term or you who have requested it? How old are both of you?

Hi we're both 37 and 38 we never requested 7 years to pay back the mortgage.
They offered 7 years.
We just dont want a massive mortgage really frustrating decision.

Rob_Williams

Sarahspangles wrote: »

What they are saying is that they think since you are borrowing less that you could pay it off more quickly. This would certainly save you money in interest in the long run. You don't have to agree with them! You can say that you would rather have more disposable income for holidays or investments, and spread it over longer. But be careful about implying you might have more commitments as that may reduce what they are prepared to lend.

Thanks for replying, I thought being a much lower risk borrowing a minimal amount would go in our favour.
But it seems that if i asked for loads of money they would be more happy?
The whole system is messed up

Thrugelmir

Rob_Williams wrote: »

The confusing part is that they offered £230,000 (max) over 25 years but i wanted not even half of that amount and they offered to lend me and wife £104,500 over 7 years????

Have you made a full mortgage application?

kingstreet

When you use the affordability calculator or apply for a decision in principle, Nationwide's system gives two outputs.

It normally gives the maximum it will lend over the chosen term and the amount you request over the shortest affordable term.

Here's one it just produced;-

Affordability Result

The maximum amount that Nationwide may be prepared to lend your customer over their requested term of 22 years and 0 months is £183,300.

The minimum term for your customer's requested loan amount of £160,000 is 17 years and 0 months.

Are you sure the data you keyed is all correct?

amnblog

As KS says, you are simply misreading the decision in principle certificate Rob.

If you are using a broker, refer to them, if not, then perhaps you should do so.