Nationwide mortgage

dwill1503

We own a house valued at 220k. We have debt of 15k. We would like to move to a house valued at 200k.

We have had our nationwide mortgage for 7 years and have 27 years remaining. When we took out the mortgage, the LTV was 90%. It currently stands at 43% although NW haven't valued the house themselves and on their system the LTV is 63%.

We have just done the application online using the nationwide moving app but it says declined and that they they cannot lend the amount needed. But we aren't borrowing any more & we would be in a better situation because we would be debt free. We would sell the house for 220, buy the 200 one and I guess receive 20k back?

Does anyone have any experience of porting/moving with nationwide? We did move 4 years ago but the house prices were the same.

Thank you,

csgohan4

Would you need a mortgage if you sold your house for a house cheaper than yours?


Sounds like you would be in a chain rather than buying a new house with a mortgage.

dwill1503

Yes, we have a balance of 95k on our existing mortgage.

Thrugelmir

dwill1503 wrote: »

But we aren't borrowing any more & we would be in a better situation because we would be debt free.

Not debt free. As you'd be rolling your accumulated debt into your mortgage. The lender is concerned that you'd then continue to overspend and build up yet further unsecured debt.

csgohan4

dwill1503 wrote: »

Yes, we have a balance of 95k on our existing mortgage.

Maybe best to speak to a broker, but with that 15k debt, that will likely be seen as undesirable on your credit report and for lenders

dwill1503

But we wouldn't be adding to the mortgage. We are buying a cheaper house for 20k less than our current one. when we sell, do we not get credit of 20k?
When we bought it 5 years ago our mortgage was 85% ltv.

Our other option which we are considering is just selling the house for 220k, paying off mortgage of 95k and sitting on money. Would NW not rather we stay a customer?

dwill1503

Also, I don't know if it matters but when we bought the current house 4/5 years ago, it was £117k and is now worth £220k

betmunch

Nationwide do not like applicants with high amounts of unsecured debt on application even if its being cleared.

you could always try a different lender if you cant convince nationwide to help you.

Best to find out why they said no first

dwill1503

We did have the debt, more in fact, when we moved 4 years ago. We just assumed they would prefer we lived in a more expensive house. As far as their system says, our current house is only worth the £117 we paid.

We will call them on Tuesday.

betmunch

4 years ago they had vastly different criteria

dwill1503

Thank you. I guess what we want to know, is if we are not increasing the LTV, are they likely to turn us down.